Yanbu National Petrochemical Company (Yansab)
BENEFITTING FROM A SURGE IN DEMAND
Yansab has increased its production capacity by more than 20 percent compared to its 2010 production levels and witnessed a corresponding increase in sales.
It has also reduced unplanned shutdowns from more than 100 days a decade ago to just 19 days a year today.
Its petrochemical products are essential ingredients for many everyday items, ranging from medical equipment and digital devices to packaging, clothing, vehicle parts, and detergents.
Despite this history of growth and expansion, Yansab faces some challenges including a fall in market prices due to the global economic slowdown, a rise in operating costs, and limited availability of feedstock.
However, Yansab is poised to benefit from a surge in demand for plastics, which has outpaced demand for other bulk materials, such as steel, aluminum, and cement.
Listing on the Saudi Exchange has helped to enhance the company's credibility and provided access to capital. Currently, Saudi Basic Industries Corporation (SABIC) owns 51% and 49% is owned by private sector entities and individuals.
The listing has underpinned the company's commitment to high standards of corporate governance.
Yansab has won the Best Performing Customer award from Saudi Aramco for three consecutive years and recently won the OSH Champion Award for Occupational Health and Safety from the Ministry of Labor.
20%Increase in production capacity compared to 2010
Yansab places a strong emphasis on technology and innovation, and is executing the SABIC Corporation Digitization Program.
It plans to capitalize on artificial intelligence, machine learning, and data science to improve its competitiveness. It is also leveraging SABIC’s partnerships with several universities for solutions to technical issues.
Yansab also focuses on sustainability and social responsibility, supporting medical professionals through the SABIC initiative “Together we overcome COVID-19.”
Yansab has reduced unplanned shutdowns from 100 days to just 19
YANSAB has developed a clear future strategy to ensure growth in the petrochemical industry which adds value to its assets and shareholder’s equity, while maintaining the highest levels of safety, quality, and sustainability, adhering strictly to all relevant industry standards and laws in order to achieve leadership, fostering the partnership between all the company-related parties (locally and globally), and growing the shareholders’ equity without prejudice to the company's social responsibility. The strategy will be implemented through the following lines:
Scale up energy optimization by putting in place several programs and projects with a core focus on ensuring reliability, sustainability and performance improvement.
Expand the production capacity for the main products.
Continue studying the available investment opportunities related to manufacturing petrochemicals.
Study purchasing shares in some companies that practice the same activity (Manufacturing Petrochemicals) or shareholding in feasible companies.