Q&A with SABIC (automotive unit of SABIC’s petrochemicals business)

JA: 2021 was an additional unforgettable year for everybody and for all kinds of motives. We experienced a bumpy restoration from the worst of the Covid pandemic, but the automotive market was also hammered by a shortage of semiconductor parts. In your enterprise, what stand out as the most important issues you confronted this 12 months?

AR: One particular of the most important difficulties was desire variability through the 12 months with multiple OEM production slowdowns and ramp ups. We worked intently with our buyers and exercised the adaptability we could to make sure we were being in a situation to meet up with their requires. Uncooked substance availability issues and logistical constraints, with an unprecedented variety of drive majeure bulletins from suppliers, exacerbated the problem. We are pretty grateful to the many people today from throughout the price chain who did their section to support the industry navigate via these disruptions.

JA: Any high places or specific successes you’d like to share?

AR: In a time of uncertainty with the challenges already pointed out, it is essential that the industry be in a position to operate together. We largely did that, many thanks largely to clear and clear interaction with our clients and suppliers. We enjoy everyone’s professionalism, resilience and dedication.

A 2nd higher place is the momentum we have created in some new places of opportunity for us and our customers. As just one instance, our workforce has produced large inroads with our buyers and their suppliers on advancing plastic options for EV battery packs. We are very psyched about the value that we can supply to the sector in this significant area. Resources from our portfolio, including flame retardant plastics these types of as STAMAX extensive glass fiber polypropylene resin and SABIC PPcompound, can probably be match changers and enablers in the progress of subsequent era EV battery packs, supporting prolonged range and improved in general performance.

JA: How are you sensation about 2022 – equally in phrases of company prospective customers and much more generally?

AR: We are optimistically inclined, so we unquestionably search forward to increased balance and however a different whole calendar year of prospects to support our prospects. With that said, and primarily based on the outlook at this instant, the field can assume to encounter additional variability in OEM manufacturing, and this will effects the full value chain. We also want to keep on adapting in how we occur with each other, virtually and physically, right until we can return more intently to how we operated prior to the pandemic. Our teams are fully commited to get the job done intently with the sector to triumph over these issues.

JA: Is just about anything rising as a individual problem in phrases of the outlook?

AR: Wanting ahead, purchaser demand seems sturdy. This can bode perfectly for long run output. On the other hand, as observed, we can likely expect to see ongoing variability in producing mainly because of the ongoing chip shortage and offer troubles. This can have a detrimental effects on the supply base. We can all concur that we have to have a provide chain nutritious sufficient to continue providing all the content discovered in a car or truck. To do that, we would gain from even more proactive collaboration in between OEMs and suppliers to far better regulate and deal with some of these issues.

JA: Do you have a message for Just Auto’s readers?

AR: We can be positive that 2022 will bring a lot more issues and adjust. With that mentioned, we as an field have confirmed how resilient, adaptable and inventive we can be. Those people characteristics will see us by way of, and I know our automotive staff at SABIC is determined to do our part. We absolutely have causes to be optimistic. Innovation in our market is healthful and ongoing. The change to electrification is accelerating and opening up new options for lots of. Developing cars that have significantly less effect on the world is a mission progressively embraced by all actors throughout the price chain. We are psyched to be element of this seismic transformation with all people in the coming several years, knowing that the operate we are executing with each other is really satisfying a higher goal for the environment.

By Tara