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19-Jan-2016

SABIC plans to restructure Kayan, possibly expand in Chinese market

The CEO of Saudi Basic Industries Corporation (SABIC) [2010.SE], Yousef Al Benyan, announced that the company is currently planning to undertake restructuring activities at its subsidiary Kayan Petrochemical Company (Kayan) [2350.SE] on technical and financial levels. According to an article on Argaam, the restructuring of Kayan is expected to have a positive financial impact on the company by 2016-17. On another note, Al Benyan stated that the company has plans relating to the Chinese market, as well as a revaluation of a portion of the plastic's division, both of which will be announced at a later stage. It is worthy of noting that SABIC owns a 35% stake in Kayan. (Tadawul)   SABIC: SAR63.20 as of 18 January 2016, Rating: Buy, FV: SAR100.00 per share, MCap: USD50,560 million, SABIC AB / 2010.SE

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