History
SABIC's history in Europe dates back to the early 20th century. In 1902, the Dutch government formed the nationalized coal company 'De Nederlandse Staatsmijnen' (Dutch State Mines), later known as DSM.
Diversification
As the company's mining operations developed, its coal-processing operations grew increasingly important. One coal-processing by-product, coke oven gas, was turned into a lucrative commodity: ammonia. Ammonia was a key ingredient in nitrogenous fertilizers, and its manufacture turned out to be the first step in a continuous diversification process. By following this path, DSM avoided the fate that would ultimately close down so many coalmines across Europe.
Rise of plastics
Plastics production started in 1959, when the first high-density polyethylene plant went into production, followed by the first naphta cracker in 1963. By 1970, chemicals (and fertilizers) comprised the company's chief activity, accounting for two-thirds of its annual turnover. Petrochemicals then gained importance: Within twelve years, profits from raw materials for plastics grew by a factor of fourteen. In 1997, DSM acquired the polymers producer Vestolen in Gelsenkirchen (Germany).
Birth of SABIC Europe
The 1970s and 1980s were times of strategic reorientation for DSM. The company eventually decided to divest its petrochemicals operations. In 2002, SABIC (Saudi Basic Industries Corporation) acquired DSM Petrochemicals, thus gaining production plants in Geleen (the Netherlands) and Gelsenkirchen (Germany). This marked the first major acquisition of SABIC outside the Middle East. The head office of SABIC Europe was established in Sittard (the Netherlands). SABIC Europe's new head office building was officially opened in September 2006.
In 2006, SABIC acquired Huntsman's European Base Chemicals and Polymers business, with production facilities in North Tees and Wilton (UK).
