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SABIC Purchases Clariant’s 50% Share in Scientific Design

Subject to regulatory approval, expected in mid-2022, the transaction will give SABIC full ownership of Scientific Design
Subject to regulatory approval, expected in mid-2022, the transaction will give SABIC full ownership of Scientific Design
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SABIC Purchases Clariant’s 50% Share in Scientific Design

Subject to regulatory approval, expected in mid-2022, the transaction will give SABIC full ownership of Scientific Design
Subject to regulatory approval, expected in mid-2022, the transaction will give SABIC full ownership of Scientific Design

Saudi Arabia’s SABIC has signed an agreement to purchase Clariant’s 50 percent stake in specialties company Scientific Design, currently a 50/50 joint-venture with SABIC.

Subject to regulatory approval, expected in mid-2022, the transaction will give SABIC full ownership of Scientific Design, which is a leading licensor of high-performance process technologies and catalysts producer.

The move is aimed at securing a greater share of the Specialties market. Last year, SABIC repositioned its Specialties division as a stand-alone strategic business unit to unlock organic and inorganic growth opportunities that are independent of feedstock dynamics.

SABIC Vice Chairman and CEO Yousef Al-Benyan said: “Catalysts are the foundation of our business. The acquisition of Scientific Design will strengthen our non-cyclical technology-oriented specialty business and move us closer to our long-term goal of becoming a global Specialties leader.”

“This is a growing global market and the Middle East region alone sources nearly $1.5 billion worth of catalysts per year. We recognize the opportunity to help meet increasing catalyst demands, increase security of supply and the level of innovation with the sector.”

With its key manufacturing plant and business headquartered in New Jersey, US, Scientific Design has operated as a joint venture for almost 20 years following SABIC’s 50 percent acquisition of the business in 2003. Employing more than 170 people globally, it is a leading licensor of high-performance process technologies and a developer of catalysts that are used in over 100 plants across more than 30 countries.

Scientific Design is a recognized leader and a strategic fit for SABIC that can strengthen and complement the high-performance capabilities of SABIC’s Specialties business. For almost 20 years, it has thrived as a SABIC joint venture securing a position at the forefront of innovation and sustainability in the chemical industry. By fully aligning mutual strengths SABIC can realize new growth potential.

SABIC’s Specialties business produces highly differentiated products which include specialty engineering thermoplastic resins and compounds, composites, thermosets & additives, and additive manufacturing solutions as well as catalyst and process technologies.

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Oil Edges Up ahead of US Fed Rate Decision, 2025 Outlook

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
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Oil Edges Up ahead of US Fed Rate Decision, 2025 Outlook

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)

Oil edged up on Wednesday as a drop in US crude inventories offered some support, although investors stayed cautious ahead of a potential interest rate cut by the US Federal Reserve and its projections for 2025.

Brent futures rose 53 cents, or 0.7%, to $73.72 a barrel at 1436 GMT, while US West Texas Intermediate crude climbed 54 cents, or 0.8%, to $70.62.

The Fed is expected to cut rates by a quarter point, but to signal a cautious approach to loosening monetary policy next year.

"A quarter-point cut itself is unlikely to shake markets much. Investors may focus more on hints and clues on how likely a January pause is, as well as on how many rate cuts policymakers are contemplating throughout 2025," said Charalampos Pissouros, senior investment analyst at brokerage XM, Reuters reported.

The US central bank will release its policy statement at 2 p.m. ET (1900 GMT), followed by remarks from Chair Jerome Powell.

Lower rates decrease borrowing costs, which can boost economic growth and demand for oil.

"Oil prices ought to see more of a reaction to the crude inventory draw seen in the API data overnight... however, such is the diverting power of central bank rate decisions that investors in all of the trading mediums are taking a very light touch to proceedings" said John Evans, analyst with oil broker PVM.

In the US, American Petroleum Institute data on Tuesday showed that crude stocks fell by 4.69 million barrels in the week ended Dec. 13, a source said. Gasoline inventories rose by 2.45 million barrels, and distillate stocks rose by 744,000 barrels, according to the source.

Analysts projected US energy firms pulled about 1.6 million barrels of crude from storage during the week ended Dec. 13, according to a Reuters poll on Tuesday.

The US Energy Information Administration will release its oil storage data on Wednesday.

"Trade war fears and uncertainty on how aggressively the US Fed will cut interest rates next year is likely capping the upside for now," UBS analyst Giovanni Staunovo said.