Sipchem to cut costs, improve plant efficiency: executive

Saudi International Petrochemical Co. (Sipchem) plans to cut operating costs and increase plant efficiency as the company seeks to offset lower prices of its main products, Abdullah al-Saadoon, president of operations, told CNBC Arabiya.

Sipchem’s plants making carbon monoxide and acetic acid had suspended operations for 25 days in Q2-2015, which cost the company nearly SAR 25 million. This impacted the company's results as well, he added.

Sipchem is focusing on markets in China, India, and East Asia. While the company used to have dealings with Iran in the past, it has no plans to resume now that the country has signed a nuclear deal with global powers, al-Saadoon said.

He added that there are no new developments on the merger with Sahara Petrochemical Co., which was put on hold.

Sipchem’s H1 net profit dropped by 39 percent to SAR 109.7 million.