SABIC to keep costs to 'absolute minimum'

COST CUTTING: SABIC is to keep costs to an 'absolute minimum', Al-Mady said. (Getty Images)

Saudi Basic Industries Corp. (SABIC) is reviewing its pipeline of projects and looking to cut costs to the "absolute minimum" by scaling back overseas travel and training amid the global slowdown, according to the group’s chief executive.

"SABIC is a global company with 70 percent of our operations overseas. Growth in Europe and the US is almost stagnant - the demand situation in those countries will affect us," Mohamed Al-Mady was quoted as saying by the UK’s Financial Times on Tuesday.

"But the Chinese, Indian and Middle Eastern economies are still growing, although at slightly slower rates, and this remains positive for us."

SABIC has cut November prices for petrochemicals by 35 percent compared to the previous month due to weakening demand, according to a Saudi newspaper report.

Saudi's central bank governor said on Monday the kingdom's crude oil and petrochemical exports will get affected by the global economic crisis.

SABIC posted its first decline in quarterly net profit in more than two years in the third quarter.

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