Since its formation in December 1999, the Saudi International Petrochemical Company, more commonly known as Sipchem, has built itself into a chemical manufacturing company that now employs over 1,100 people.
Sipchem is owned by Saudi private investors and other individuals from countries that make up the Gulf Cooperation Council: Bahrain, Kuwait, Oman, Qatar and United Arab Emirates. This group began with an investment of $500 million and has seen the value grow to the point that revenue in 2015 was nearly double that amount.
The company produces items that take advantage of the abundant reserves available in Saudi Arabia. Among the items that Sipchem sends out on a regular basis are those made of acetate, include butyl, ethyl and ethylene vinyl. In addition, polyethylene that’s either cross-linkable or low density is also available.
Despite the environmental reputation that oil has with some facets of society, great care is taken to produce plastics that can be sustained, engines that can be fuel-efficient and metals that are made to be non-corrosive.
Despite the constraints of Sharia law, which allows for no interest to be charged or earned, Sipchem completed a five-year bond issue worth $266 million in June 2016 that will be used to pay off financially based obligations.
Just one month before, news of Sipchem possibly merging with another Saudi chemical company resurfaced again after talks had apparently ended two years earlier. Should the company merge with Sahara Petrochemicals Co., it would help create a company with a $2.7 billion market value.
Conflict developed in 2014 when it came to determining a proper structure for the merged company. Since that time, the price of oil has been cut in half, though should this agreement proceed, it will be the biggest convergence of companies within Saudi Arabia in the past decade.