SABIC sees opportunities in nation's growth pathway

Multinational chemical companies are expressing strong confidence in the Chinese market, buoyed by Beijing's strategic shift toward sustainable and high-quality development despite broader economic transitions, said company executives and industry experts.

Executives highlight China's commitment to innovation, massive market size and ongoing opening-up policies as key drivers for continued investment and growth in the sector.

Abdulrahman Al-Fageeh, CEO of SABIC, one of the world's largest diversified chemical firms, told China Daily in an exclusive interview that China's "clear focus on sustainable and high-quality growth provides a good direction for chemical multinationals".

He emphasized that this direction fosters innovation and collaboration necessary for sustainable growth across various sectors and addressing global challenges.

"China is poised to continue its role as a major driver of economic growth for both Asia and the world," said Al-Fageeh, citing the country's robust manufacturing base and scientific research capabilities.

China's emphasis on "new quality productive forces" and its pursuit of industrial upgrades are creating significant opportunities for innovation-driven companies like SABIC, he said.

While some foreign investors have expressed concerns about the evolving business environment in China, chemical MNCs like SABIC appear to be taking a long-term view, banking on the country's vast market potential, and its strategic focus on sustainable and innovation-led expansion to ensure continued growth in the years ahead.

SABIC, based in Riyadh, Saudi Arabia, is currently building a 44.8 billion yuan ($6.22 billion) world-scale petrochemical complex in Fujian province with the Fujian Energy Petrochemical Group Co Ltd, and it plans a fourth compounding plant in China, demonstrating its long-term commitment.

The company is also leveraging its technology center in Shanghai to develop tailored solutions for China's evolving market demands, particularly in high-growth sectors like electric vehicles and renewable energy.

"All these efforts are to meet the increasing demands from our customers, and we will continue to invest in China and develop high-quality, tailored solutions with advanced technologies," said Al-Fageeh.

Industry experts believe China's ongoing efforts to further open its market and enhance policy support for foreign investment are poised to underpin the sector's prospects.

According to the China Petroleum and Chemical Industry Federation (CPCIF), China's petrochemical sector is expected to bolster profits this year, a key turning point after a period of challenges.

Fu Xiangsheng, vice-president of the CPCIF, said China's petrochemical sector has overcome its downturn, achieving stabilization last year and is now showing signs of recovery, fueled by rebounding global oil prices, increased domestic demand and robust government backing.

Figures released by the federation reveal that the country's petrochemical sector's revenue rose to 16.28 trillion yuan last year, up 2.1 percent year-on-year, amid an intricate landscape.

Al-Fageeh acknowledges China's broader economic transition, viewing it as a catalyst for further industry advancement.

"China's commitment to highquality development, sustainability and innovation has been guiding industrial transformation and upgrading, creating new room for innovation-driven companies like us to thrive," Al-Fageeh said.