Hong Kong, (Reuters) – Saudi Basic Industries Corp (Sabic) will almost triple steel output by 2020 but is not seeking steel acquisitions beyond its home region, despite a global consolidation wave, its chief financial officer said.
“In every business we have, we are global. But in steel, we are really a regional company and we will stay in our region,” Mutlaq Al Morished said in Hong Kong.
“We intend to grow in steel. We make about six million tonnes now and our strategy is to be making around 15-17 million tonnes by 2020.”
State-controlled Sabic is the world’s most highly valued chemical company and the top steel producer in the Middle East.
But he said there would be no impact on the firm from further consolidation among metals firms, such as BHP Billiton’s bid for Rio Tinto, a potential union of two iron-ore powerhouses that worries steelmakers in China.