A s i a Pa c i f i c NEWS EDITION 23 JANUARY FEBRUARY 2008 by ptd10654

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									    A s i a Pa c i f i c

                                                                                    EDITION 23                 JANUARY/FEBRUARY 2008

                         SABIC AND SINOPEC
INSIDE                   CORP SIGN HEADS
                         OF AGREEMENT
02                       FORMATION OF
                         50:50 JOINT
                         VENTURE TO
03                       ESTABLISH
China News
                         ONE MILLION
                         METRIC TONS PER
04-05                    YEAR ETHYLENE
Commercial Meeting       COMPLEX IN TIANJIN                          SABIC Chairman Prince Saud shaking hands with Sinopec Corp Chairman Su Shulin after
                                                                     the HOA signing ceremony
                         China Petroleum and Chemical
06-07                    Corporation (Sinopec Corp.) and SABIC
                         have signed a Heads of Agreement
                                                                     The Heads of Agreement was signed at
                                                                     a ceremony in Beijing by SABIC
                                                                                                                 scale polyolefins complex for SABIC
                                                                                                                 affiliate Yanbu National Petrochemicals
SABIC IP Nansha plant    (HOA) toward forming a joint venture        Chairman, Prince Saud bin Abdullah bin      Company in Yanbu, Saudi Arabia.
                         company.                                    Thenayan Al-Saud, and Sinopec Corp.
                                                                     Chairman, Su Shulin.                        “China is an important market for
                         This 50:50 equal share joint venture                                                    SABIC’s global strategy. This Heads of
08                       company will invest in a 1 million
                         metric ton per year of ethylene
                                                                     Prince Saud noted: “The new joint
                                                                     venture with Sinopec Corp. will further
                                                                                                                 Agreement is a key milestone towards
                                                                                                                 realizing SABIC’s goal of establishing a
Case study – Chongqing   derivatives complex (600,000 metric         strengthen the links between our two        manufacturing centre in Asia. This
Stadium                  tons of polyethylene and 400,000            companies. This will be SABIC’s first       facility in Tianjin will serve customers in
                         metric tons of Ethylene Glycol) to be set   joint venture in China and we hope this     the world’s fastest growing market, and
                         up in Tianjin that will receive all its     will lead to more joint ventures and a      is an important component in SABIC’s
                                                                     strong relationship with Sinopec in the     corporate strategy of being among the
09                       ethylene feedstock from an ethylene
                         cracker owned by Tianjin Petrochemical
                         Company, a branch of Sinopec Corp.
                                                                     important China market.”                    world’s top petrochemical companies
                                                                                                                 by 2020,” said Mohamed Al-Mady,
Customer event           The total investment will be around         SABIC already has a strong relationship     SABIC Vice Chairman and CEO.
                         US$1.7 billion, with the complex            with Sinopec Corp. and Chinese
                         scheduled to be completed by                engineers from Sinopec Corp. are

10-11                    September 2009.                             currently helping to construct a world-

News update

Corporate News

Published by SABIC
in Asia Pacific           About Sinopec Corp                         midstream and downstream                   marketing refined oil products; and
                                                                     operations. The principal operations of    producing and distributing chemical
                                                                     Sinopec Corp. and its subsidiaries         products. Based on 2006 turnover,
Visit our website at      Sinopec Corp. is the first Chinese
                                                                     include: exploring, developing,            Sinopec Corp. is the largest listed
www.sabic.com             company that has been listed in Hong
                                                                     producing and trading crude oil and        company in China. The Company is the
                          Kong, New York, London and Shanghai.
                                                                     natural gas; processing crude oil into     largest crude oil and petrochemical
                          The company is an integrated energy
                                                                     refined products; producing, trading,      company in China and Asia.
                          and chemical company with upstream,
                                                                     transporting, distributing and

                                                                                                                                 ASIA PACIFIC NEWS 02

                                                           With demand for polymers continuing to experience
MESSAGE FROM ACTING                                       double-digit growth in China, we foresee China as a
GENERAL MANAGER, SABIC                                    critical part of our portfolio and important
                                                          component in our strategy of being among the
ASIA PACIFIC                                              world’s top petrochemicals companies by 2020.
Dear Friends                                              The year just past, 2007, was a very good year for
                                                          SABIC.  The company grew strongly, made excellent
I would like to wish all our friends, customers,          profits, and continued its rapid progress towards its
colleagues and their families a Happy New Year and        2020 strategic goals.  The acquisitions we have made
also Gong Xi Fa Cai!                                      strengthened SABIC in all regional markets and
                                                          broadened our platforms for future organic growth.
The signing of the Heads of Agreement towards the          
formation of a joint venture in Tianjin between SABIC     In just a few years, our global workforce has grown
and Sinopec is of extreme significance for us.  This      from 10,000 people to more than 30,000, with the
marks the first step forward for SABIC in establishing    formation of SABIC Innovative Plastics.  SABIC is now
a manufacturing site in Asia.  This is indeed a huge      truly a global company with a talented, highly
achievement and we are excited about making this          technically skilled and knowledgeable workforce
joint venture a benchmark for our activities in China.    capable of innovation and growth around the world.

This joint venture will bring us even closer to our       We all look forward to working closely with our valued
customers. It will also enable us to serve our PE and     customers, our colleagues, associates and partners -
MEG customers better as we will have more products        providing support and resources to one another,
available for them when they need it.                     working in a cooperative and positive spirit, and
                                                          moving toward our strategic objectives.
The Asia-Pacific Region is now the most powerful                                                                   With warmest regards
engine of global economic growth and China is the         Our successful partnerships will provide the
most important part of the region. SABIC has been         momentum for growth for many years to come, and          Patrick Chan
active here for more than two decades and we look         here is wishing all of you a wonderful year 2008!        Acting General Manager
forward to many more decades of strong growth in
China and in the region in general.

                                                                                                                   for their exports by increasing domestic consumption
                                                          ASIAN ECONOMIES TO                                       and private and public investment.
                                                          MAINTAIN MOMENTUM IN                                     Vietnam was also able to sustain its growth through
                                                          2008                                                     an increase in domestic demand, while Singapore
                                                                                                                   successfully moved to high value-added export.
                                                                                                                   Thailand’s economic growth weakened from 5.0
                                                          East Asia’s economic growth is expected to moderate      percent in 2006 to 4.5 percent in 2007, as private
                                                          to 7.7 percent in 2008, a slight decline from 8.4        domestic consumption and investment weakened
                                                          percent in 2007, according to a United Nations           amidst political uncertainties. Thailand’s GDP growth
                                                          economic report released in December 2007.               is expected to grow to 4.8 percent, assuming political
                                                                                                                   uncertainty will dissipate.
                                                          China, with its 11.4 percent Gross Domestic Product
                                                          growth, has continued to lead economic expansion in
                                                          the region through vigorous investment spending and
                                                          rapid export growth in 2007. Government measures to
                                                                                                                       Inflation has remained in check
                                                          cool the booming Chinese economy and an expected             across the region. Increasing
                                                          deceleration of export demand is expected to trim            import costs caused by rising
                                                          GDP growth to 10.1 percent in 2008, says the World
                                                          Economic Situation and Prospects 2008.
                                                                                                                       international oil and food
                                                                                                                       prices have been mitigated by
                                                          Growth was also robust in other East Asian countries         currency appreciation in most
                                                          in spite of a more challenging external environment
                                                          stemming from the slowdown of United States
                                                                                                                       economies. Inflation in China
                                                          economy and the significant appreciation of local            nonetheless accelerated from
                                                          currencies against the dollar and to a lesser extent         1.5 percent in 2006 to 4.9
                                                          also against the Chinese renminbi. The currency
                                                          appreciation and reduced global demand, affected
                                                                                                                       percent in 2007.
                                                          exports of price-sensitive, labor-intensive
                                                          manufacturing products, such as textiles and apparel
                                                          and furniture, as well as of agricultural commodities.   While East Asia economies are expected to remain
                                                                                                                   strong, albeit at a relatively moderated GDP growth
                                                          Many countries have taken measures to reduce their       rate of 7.7 percent, the Report warns of possible
                                                          dependency on fluctuations in world markets. Hong        downside risks. The current sub-prime mortgage
                                                          Kong, Indonesia, Malaysia, the Philippines and Taiwan    market in the United States could cause problems for
                                                          were able to ease the impact of weakening demand         credit market and financial institutions in the regions.

                                                                                                                              ASIA PACIFIC NEWS 03

SABIC Chairman, Prince Saud bin Thenayan Al-Saud,
met with China’s Minister of Commerce, Mr Chen
Deming, in Beijing during His Highness’ recent visit
to China.

Prince Saud briefed Minister Chen on the recent
signing of the Heads of Agreement toward the
formation of a joint venture with SINOPEC for a one-
million ton ethylene cracker in Tianjin. Minister
Chen was delighted to be briefed on this
development and congratulated Prince Saud on the
wonderful achievement.

Prince Saud also informed Minister Chen that SABIC
is looking toward other opportunities to invest in
China, which is SABIC’s largest overseas market.
Prince Saud was also accompanied by SABIC Vice
Chairman & CEO, Mr Mohamed Al-Mady, board
members, several Vice Presidents and other senior

On a separate occasion, Prince Saud and the VIP
delegation also met with the Vice-Chairman of the
National Development and Reform Commission
(NDRC), Mr Zhang Guobao. NDRC studies and
formulates strategies for national economic and
social development and guides the overall economic
system restructuring.
                                                       Left to right: Mr Mohamed Al-Mady, Prince Saud and Mr Chen Deming, China’s Minister of Commerce

Prince Saud meeting with NDRC Vice Chairman, Mr Zhang Guobao

SABIC Chairman, Prince Saud Bin Thenayan Al-Saud,
officially opened SABIC Innovative Plastics’ 2008
Pacific Commercial Summit in Shanghai, China. Prince
Saud was accompanied by SABIC Vice Chairman &
CEO, Mr. Mohamed Al-Mady, Board Members and
other senior executives.

The event, which was held on 29 January 2008, was
attended by 650 SIP product and marketing personnel
from Asia Pacific and the SIP leadership team led by
Mr. Brian Gladden, CEO of SIP.

In his speech, Prince Saud welcomed all 19,000 staff
from SIP to the SABIC family, which is now 30,000

Prince Saud said, “SABIC is very proud to have SABIC
Innovative Plastics (SIP) and its 11,000 talented
employees as members of the Company’s Global
Team. SIP’s high performance polymers both
complement and broaden our existing portfolio of
polyolefins and other polymers. SIP offers a strong
platform for continued growth and innovation that
you have demonstrated so successfully in past years.
                                                         Prince Saud giving the opening speech at the event
The formation of SIP was a major strategic step for
SABIC and moves the company forward in its goal to
grow the specialty segment of our product offerings.     Mr. Mohamed Al-Mady said, “We are expecting great        Mr. Al-Mady also said, “Our goal for 2008, in a broad
The result of a recent extensive strategic planning      things from SIP and your culture of innovation and       sense, is to build upon our collective existing and new
exercise by SABIC established targets for the year       growth. SIP’s products and its skilled workforce add a   strength and to move forward with our growth
2020 of US$60 billion in revenue with some 18% - 19%     totally new dimension and element of strength to         agenda increasing our global market share”.
coming from specialties. This growth is expected to be   SABIC’s growth potential”.
achieved by organic growth, additional acquisition
and JV formations”.

The VIP delegation at the opening
                                                                                                                                    ASIA PACIFIC NEWS 05

Prince Saud presented awards to product and
marketing staff of SABIC Innovative Plastics in Asia
who made outstanding contributions to the company.

Prince Saud congratulated the SIP Asia personnel who
achieved excellent results in meeting and exceeding
their sales targets for 2007. The awards were given
out at a gala dinner for 650 Asian personnel who
attended the SIP Pacific Commercial Meeting.

The event was also attended by SABIC Vice Chairman
& CEO Mr Mohamed Al-Mady, SABIC board members,
VPs and other senior personnel. Mr Brian Gladden,
CEO of SABIC Innovative Plastics was also present.

The staff from each SIP office in Asia Pacific also
entertained the audience with cultural
performances.The dress code of the event was
national or traditional costume. Prince Saud and            Mr Mohamed Al-Mady, SABIC Vice-Chairman and Mr Khaled Al-Mana, SABIC VP Intermediates, with SIP Japan staff
other SABIC VIPs wore the traditional Chinese jacket
which was much applauded by all staff.

Mr Alan Leung, SIP Asia President & CEO, extending a        SIP China team gave an rousing drum performance as the opening number
warm welcome to all

SIP Greater China outstanding achievers receiving their awards                                                        SIP South-east Asian team performed a cross-cultural
                                                                                                                      dance sequence

After officiating SIP’s Pacific Commercial Meeting in
Shanghai, Prince Saud and the VIP delegation
travelled to Guangzhou to attend the official
opening of SIP’s Nansha compounding facility. The
facility is located at Nansha, which is one hour away
from Guangzhou by road.

Whilst at the plant, Prince Saud presided over the
official opening ceremony, which commenced with
the ceremony of ‘dotting the lion’s eye’, tree-
planting, gathering with the employees and a tour of
the plant led by Ms Meggie Wang, GM of
Manufacturing at the Nansha facility.

                                                           The lion dance troupe welcomed the VIP delegation to the plant

Prince Saud and Mr Mohamed Al-Mady officially opening the plant                          Prince Saud dotting the eye of the lion to symbolize good luck in the Chinese tradition

Left to right: Ms Meggie Wang, GM Manufacturing Nansha; Mr Alan Leung, SIP Asia          The symbolic tree-planting ceremony
President & CEO; Mr Brian Gladden, SIP CEO; Mr Mohamed Al-Mady, SABIC Vice Chairman
& CEO; Mr Abdulmohsin Al-Fares, SABIC Board Member and Prince Saud waving to the
staff upon arrival at the plant
                                                                                      ASIA PACIFIC NEWS 07

Prince Saud giving a speech to employees at the Nansha plant

Ms Meggie Wang, GM Manufacturing Nansha bringing the VIPs on a tour of the facility

The plant employees posing for a photo with the VIPs

                                                                                                                                  ASIA PACIFIC NEWS 08

                                                         attractive to us as we could visualize its long-term      leave the sheet virtually spotless.
SABIC INNOVATIVE PLASTICS’                               cost and maintenance benefits”, says Mr. Zhang Feng,
LEXAN THERMOCLEAR EASY                                   General Manager, Chongqing Urban Development Co.
                                                                                                                   Lexan Thermoclear Easy Clean sheet’s metallic grey
                                                                                                                   color was created on special request of Chongqing
CLEAN SHEET GLAZES THE                                                                                             Urban Development Co. Ltd. It was installed at the
                                                         Most spectators at global sporting events demand a        Chongqing stadium in 2004, a project managed by
ROOFTOPS OF THE FIRST                                    comfortable viewing experience in all types of            the Chongqing Urban Development Co. Ltd.
                                                         weather. One way of achieving this is by offering
OLYMPIC STADIUM IN                                       state-of-the-art facilities, which feature glazing on     Furthermore, high-level light transmission and
                                                         stadium roofs.                                            weatherability enable the stadium roof to withstand
CHONGQING, CHINA.                                                                                                  long-term exposure to sunlight and harsh weather
                                                         Lexan Thermoclear Easy Clean sheet is an excellent        conditions.
The patented technology of Lexan Thermoclear Easy        candidate for stadium roof glazing due to its light
Clean sheet was chosen by Chongqing Urban                weight, multi-wall X-structure configuration,             The stadium can be used as a reference for sporting
Development Co. Ltd. for the roof glazing of the first   providing superb stiffness, improved load stiffness,      authorities in China, host country of the Beijing
Olympic stadium in Chongqing, west China. With over      and high impact strength compared to conventional         Olympic Games in 2008. “Chongqing stadium is a
60,000 people to please over an area of around           twin-wall products.                                       showcase of SABIC Innovative Plastics’ commitment to
36,000 square meters, this comes as no surprise.                                                                   supplying quality that meets customer expectations
Lexan Thermoclear Easy Clean sheet needs minimal         It may also provide customers with significant cost       in the building and construction industry in Asia,” said
cleaning, provides excellent light transmission,         savings.                                                  Sanjiv Vasudeva, Pacific Pole Leader of Specialty Film
delivers a high stiffness performance, and helps                                                                   & Sheet for SABIC Innovative Plastics. “We’re proud
protect spectators from changing weather conditions.     The sheet incorporates SABIC Innovative Plastics’         that this may set an example for the future of Asia’s
                                                         patented coating technology on its exterior surface,      glazing industry.”
                                                         to create self-cleaning properties when the sheet
SABIC Innovative Plastics &                              comes into contact with water. Patented hydrophobic       SABIC Innovative Plastics supports projects in China
Chongqing Urban Development                              coating applied to Lexan Thermoclear sheet                with the latest technology and materials, aiming to
                                                         demonstrates reduced sheet surface tension. This in       support the Olympic spirit of being swifter, higher,
Co. Ltd.                                                 turn increases the contact angle of water to the sheet,   and stronger.
                                                         which typically ranges from 66 degrees for standard
“The additional benefit from choosing this novel         polycarbonate to 100 degrees for Easy Clean. The
grade of Lexan* Thermoclear* sheet was particularly      water that forms large droplets wash away dirt and

                                                         The delegation consists of
JAPAN DELEGATION VISIT TO                                Mr. Hajime Nakashima, Manager, Refinery Technology
SABIC HQ                                                 Group, Refining & Technology Department, COSMO
                                                         OIL CO., LTD.
A delegation from Japan recently visited SABIC HQ        Mr. Takashi Kinno, Corporate Planning Group Leader,
and Petrokemya. The delegation included members          Corporate Planning Department, KYOKUTO
from RING, which is the “Research Association of         PETROLEUM INDUSTRIES, LTD.
Refinery Integration for Group-Operation”, Japan’s       Mr. Kiichi Itoh, Senior Chief Scientist, Research &
industry-wide refinery/petrochemical research            Consulting Division Department A, MITSUBISHI
organization under the leadership of the Ministry of     CHEMICAL TECHNO-RESEARCH CORPORATION
Economy, Trade and Industry (METI) of Japan,
currently focusing on refinery/petrochemical             The delegation discussed petrochemical feedstock
integration related-development. Its members are         diversification as well as briefed SABIC personnel on
composed of representatives from major refinery and      what RING has already achieved in the refinery and
                                                         petrochemical integration area.                           The RING delegation members was hosted by Mr Ali Ali-
petrochemical companies in Japan.                                                                                  Khuraimi, VP R&T (2nd from left)

                                                                                                                               ASIA PACIFIC NEWS 09

                                                           The Fertilizers team led by Regional Manager Ng Boon
GOLFING IN BANGKOK                                         Howe and Basic Chemicals team led by Regional
                                                           Manager Lee Lam Lee, together with their staff
The Fertilizers and Basic Chemicals Strategic Business
                                                           attended the event to build closer rapport and
Units hosted a golf tournament and a dinner
                                                           relationship with their customers.
reception for major customers in Bangkok at the end
of 2007, to thank them for their wonderful support
                                                           The golf tournament was won by Mr Manu from Chia
over the years.
                                                           Tai and the runners-up were also all from Chia Tai, Mr
                                                           Yuwaroj and Mr Thepvit respectively.

                                                                                                                    First runner up of the golf tournament, Mr Yuwaroj

Mr Arjaf Al-Senan, Sales Manager Fertilizers presenting the champion trophy to Mr Manu from Chia Tai, with Mr Ng              Second runner-up Mr Thepvit
Boon Howe (center) looking on.

The Fertilizers and Basic Chemicals Teams posing for a group photo with customers

                                                                                                                                 A S I A PAC I F I C N E W S 10

                                                                                                                   from Asian countries such as Thailand, China and
                                                          PLASTICS RAKE IN US$700                                  Singapore.
                                                          MILLION IN REVENUES                                      To reduce dependency on imported materials, the
                                                                                                                   industry plans to produce 800,000 tons, or 30 percent
                                                          Vietnam’s plastics export turnover reached US$700
                                                                                                                   of the total material needed for plastic production by
                                                          million, a year-on-year increase of 46 percent,
                                                          according to the Ministry of Industry and Trade.
                                                          In the first 11 months of 2007, the country’s plastics
                                                                                                                   By 2010, the industry hopes to earn US$1 billion
                                                          export earned US$641 million, surpassing the year’s
                                                                                                                   through the export of 4 million tons of plastics.
                                                          target of US$600 million.
                                                                                                                   However, it may be difficult to reach the target due to
                                                          To reach the target, the sector focused on investment
                                                                                                                   the nation’s lack of petrochemical industry – the main
                                                          in developing plastic materials, high quality
                                                                                                                   supplier of material for plastic production and the
                                                          production and waste plastic processing,
                                                                                                                   sector is yet to fully exploit waste plastic materials.
                                                          Domestic producers are building modern factories
                                                                                                                   The Vietnam Plastics Association said the US, Japan,
                                                          and using alternative channels to source raw materials
                                                                                                                   Switzerland, Norway, the UK, Germany and Cambodia
                                                          for plastic goods production.
                                                                                                                   were the biggest importers of the country’s plastic
                                                                                                                   products including packaging, canvas and gloves
                                                          According to the ministry, 90 percent of plastic
                                                          materials for production are imported, particularly

Vietnam now conveys the impression of being the next
China, in terms of economic progress, investment
potential and the dynamism of its people. However, if
Vietnam hopes to replicate China's economic miracle,
its logistics infrastructure will have to keep up with
projected growth in manufacturing and international

Vietnam joined the ASEAN (Association of South East
Asian Nations) in 1995 and the Bilateral Trade
Agreement with the US in 2000 accelerated Vietnam's
transformation into a manufacturing-based, export-
oriented economy. In 2006, Vietnam became the WTO's
(World Trade Organisation) 150th member.
According to government figures, Vietnam's GDP
growth was 8.5 percent in 2007, the second fastest in
Asia (after China) and the fastest in Southeast Asia.
What does this mean for the logistics industry?
Vietnam is now firmly on the radar screen of
international investors.

Boosted by its WTO accession, FDI (foreign direct         imports has also increased by an average of 20.5         India, the government alone will not be able to fund
investment) in Vietnam rose by almost 40 percent to       percent annually from 2000 to 2006, which is partly      and build up infrastructure quickly enough to meet
US$10.2 billion in 2006.                                  due to MNCs bringing in more materials for               the demands of the booming economy.
                                                          manufacturing operations.
Intel, 3M, Nike and Canon are some of the big names                                                                Under agreements reached during the negotiations
moving in. Vietnam's consistent economic growth and       At present, the roads and ports in Vietnam are           for its WTO membership, Hanoi has agreed to allow
political stability during the past 10 years have been    becoming choked with cars and ships, with some
key drivers in attracting such investors. The so-called   reports suggesting that congestion is worse than in      foreign businesses to establish joint ventures in
"China plus one" strategy of MNCs (multinational          China. The lack of air and ocean transportation          transport, freight forwarding, and warehouse
corporations) to reduce their excessive dependence        networks, as well as warehouses and distribution         services. After five to seven years, the ventures can be
on China is another factor attracting FDI into Vietnam.   facilities, is also hampering the growth of efficient    converted into foreign-owned companies.
                                                          logistics practices.
For Vietnam, FDI has been akin to importing a ready-                                                               The development of Vietnam's logistics industry has
made private sector, accelerating economic growth         Additionally, most of the local logistics service        the potential to considerably improve its
and job creation. With the economy set to grow even       providers have been operating for less than 10 years,    competitiveness by reducing transport and inventory
further, the logistics sector in Vietnam will have to     with limited capital, coverage, service ranges and IT    costs, and improving efficiency. Failure to develop the
keep up or else production could shift elsewhere in       capabilities. Many do not have representative offices    logistics sector, however, could mean that Vietnam
Asia.                                                     abroad. Hence, logistics costs have become a major       may not attain its full economic potential, or worse,
                                                          contributor to the cost of doing business in Vietnam.    lose out to China or its Southeast Asian neighbors in
The Economist Intelligence Unit (EIU) found that value                                                             the longer term.
of Vietnam's exports grew at an average of 18.2           The government hopes to upgrade roads, seaports
percent annually from 2000 to 2006. The value of          and airports. However, as in the case with China and

                                                                                                                                      A S I A P A C I F I C N E W S 11

The Asia-Pacific region accounts for 42 per cent of the
global market for maritime port operations and
services with growth forecast to reach 44 per cent by
2010, a survey said. 'The main areas of growth in ports
and terminals are expected in China, India and Korea,'
said a report by Fusion Consulting Asia.

The 42 per cent, or 43 billion US dollars, is expected
to grow to 54 billion US dollars. Asia is also expected
to be the main battleground for port supremacy,
Fusion said. Singapore, Hong Kong and Shanghai are
far ahead of the pack in terms of container traffic.

The offshore and shipbuilding and repair sectors are
also set for strong growth. The Asia-Pacific's share of
the global market for offshore operations is 23 per
cent, but likely to rise from 31 billion US dollars
currently to 41 billion by 2010, the report said.            It handled a record 27.9 million containers or twenty-
                                                             foot equivalent units - up 13 percent from 2006. The
Established repair yards in Singapore, Hong Kong and         Singapore Registry of Ships grew by 13.8 percent to
Korea are seen as expanding in China through joint           reach 39.6 million gross tons as at end 2007.
ventures. 'In the long run, the ship repair industry in
Singapore is likely to be threatened by the rise of low-     The registry of ships also grew by 13.9 percent to
cost ship repair yards in China, India, Indonesia and        reach 39.6 million tons at the end of 2007. The
Vietnam,' the report said.                                   number of international shipping groups operating in
                                                             Singapore is pushing towards 100.

Singapore retains busiest world                              In a recent World Bank study, Singapore was ranked
port title                                                   the number one logistics hub out of 150 countries
                                                             surveyed. The government is expanding the port
Singapore handled a record 27.9 million containers           capacity to meet growing demand, and PSA is
last year, reinforcing its position as the world's busiest   equipping all its new container berths with new super
port. 2007 was a good year for the maritime sector as        post panamax cranes to help with the increased
a whole, but going forward, the industry is keeping an       overflow.
eye on issues related to manpower, environment
and security.                                                To stay ahead of the competition, the focus will be on
                                                             meeting challenges in manpower, the environment
The Singapore maritime sector achieved double-digit          and security. There are also efforts taken to protect
growth across the board last year. Despite intense           the environment within the port waters, and to ensure
competition from the likes of Hong Kong and                  the continued flow of goods in times of
Shanghai, the port was able to hold its own.                 heightened threat.

                                                             At Terminal 3, travellers and airport visitors will also   annum to Changi Airport, bringing the airport’s total
SINGAPORE CHANGI AIRPORT                                     get to enjoy varied shopping and dining options from       annual capability to about 70 million passenger
TERMINAL 3 OPENS FOR                                         over 100 retail shops and 40 food & beverage outlets.
                                                             With the opening of Terminal 3, Singapore Airlines’
                                                                                                                        movements. Terminal 3 also adds another 28
                                                                                                                        aerobridge gates to Changi Airport. Among the 28
OPERATIONS                                                   long-haul flights will operate out of Terminal 3 and its   aerobridge gates are eight gates that are designed to
                                                             regional flights will operate out of Terminal 2.           handle the A380 aircraft.
Singapore Changi Airport’s new Terminal 3
commenced scheduled flight operations on 9 January           Terminal 3 and its associated works cost S$1.75
2008.                                                        billion. It adds a capacity of 22 million passengers per

                                                             Changi Airports International (CAI) has been selected      world's largest airport in terms of airport land – ten
SINGAPORE COMPANY                                            as the preferred bidder to manage and operate the          percent bigger than the size of Singapore.
SELECTED AS PREFERRED                                        King Fahd International Airport in Damman, Saudi
                                                             Arabia. Negotiations are expected to be finalized in       In the Middle East, CAI is currently involved in
BIDDER TO MANAGE                                             the next two months as the company was chosen by           operating the Abu Dhabi International Airport. It has
                                                             Saudi Arabia's General Administration of Civil             also secured the masterplan contract to develop the
DAMMAN AIRPORT IN SAUDI                                      Aviation.                                                  King Hussein International Airport in Aqaba, Jordan.

ARABIA                                                       The King Fahd International Airport is the gateway to
                                                             the eastern province of Saudi Arabia and it is also the

                                                                                                                                         A S I A P A C I F I C N E W S 12

                                                                 results of the fiscal year ending December 31, 2007,      “The company’s net profits reported for the 4Q 2007
SABIC PROFITS FOR 2007 HIT                                       the operating profits stood at USD10.9 billion            amounted to USD1.83 billion compared to USD1.63
UNPRECEDENTED USD7.2                                             compared to USD8.2 billion in 2006, an increase of 32
                                                                                                                           billion in the same period last year, an increase of 12
                                                                 Prince Saud Ibn Abdullah Ibn Thenayan Al-Saud,            The Prince lauded the efforts of the members of the
SABIC reported profits for its operations during 2007,           Chairman of SABIC said: “The increase in profits was in   board as well as all SABIC and affiliates’ employees,
amounting to USD7.2 billion, compared to USD5.4                  parallel with an increase in profit per share to          the collaboration of shareholders, customers and
billion in 2006, an increase of 33 percent. These                USD2.88 compared to USD2.16 last year. This increase      suppliers.
profits included SABIC Innovative Plastics’ results for          occurred due to a 15 percent increase in sales and the
the last 4 months of 2007.  According to preliminary             rise of global prices of key products.”

Mr Mohamed Al-Mady said that SABIC is expecting great things from SABIC Innovative Plastics

                                                                 in the U.S. and the reduced prospects in the high         As Prince Saud has stated, we are counting on a great
A LOOK AHEAD                                                     income countries.                                         performance from SIP.
By Mr Mohamed Al-Mady, SABIC Vice-Chairman & CEO
(extract of speech given at SABIC Innovative Plastics’ Pacific
                                                                 The Asia Pacific Region is expected to continue having    We are expecting great things from SIP and your
Commercial Meeting)                                              strong growth but moderately less in 2008 than in         culture of innovation and growth.  SIP’s products and
                                                                 2007.  Some analysts suggest that China’s growth may      its skilled workforce add a totally new dimension and
The year 2007 was a very good year for SABIC overall             have peaked in 2007 with a cooling of the global          elements of strength to SABIC’s growth potential.
and the wind was certainly at our back.                          expansion and a possible further tightening of             
                                                                 monetary policy as well as some slowing in export         When SABIC’s existing large polyolefins portfolio,
However, the year 2008 promises to present some                  sales.                                                    primarily commodity, is added to SIP’s high
significant challenges with the wind in our face.  The                                                                     performance polymers, SABIC now has a portfolio of
U.S. has problems with high energy prices, diminished            We do have our work cut out for us in 2008.  The          polymer offerings which has both breadth and depth
credit availability and a collapsed housing sector.              environment around the world will not be as               – with further potential for growth in offerings and
Goldman Sachs Investment Bank has forecast that the              accommodating.  Our goal for 2008, in a broad sense,      market share.  Certainly this puts us in a position to
U.S. economy will be in recession during 2008.                   is to build upon our collective existing and new          provide a broader array of polymer offerings to our
                                                                 strengths and to move forward with our growth             customers around the world.
On a broader outlook, the World Bank’s most recent               agenda increasing our global market share.                 
forecast calls for global growth to moderate to 3.3%,                                                                      SABIC now has an incredible knowledge based within
down from 3.6% in 2007.  Fortunately the developing              To do this we must move successfully to identify and      its workforce and now it is our job to find ways to best
economies are expected to have continuing good                   capture the synergies which exist between SABIC           tap into this knowledge pool. 
growth, partially offsetting the poor growth prospects           Innovative Plastics (SIP) and the remainder of SABIC. 

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