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

JA: 2021 was one other memorable 12 months for everybody and for all kinds of causes. We had a bumpy restoration from the worst of the Covid pandemic, however the automotive business was additionally hammered by a scarcity of semiconductor elements. In your small business, what stand out as the most important challenges you confronted this 12 months?

AR: One of many largest challenges was demand variability all year long with a number of OEM manufacturing slowdowns and ramp ups. We labored carefully with our clients and exercised the flexibleness we may to make sure we have been able to satisfy their wants. Uncooked materials availability points and logistical constraints, with an unprecedented variety of power majeure bulletins from suppliers, exacerbated the state of affairs. We’re very grateful to the many individuals from throughout the worth chain who did their half to assist the business navigate by way of these disruptions.

JA: Any excessive spots or explicit successes you’d prefer to share?

AR: In a time of uncertainty with the challenges already talked about, it will be significant that the business have the ability to work collectively. We largely did that, thanks principally to clear and clear communication with our clients and suppliers. We recognize everybody’s professionalism, resilience and dedication.

A second excessive spot is the momentum we have now inbuilt some new areas of alternative for us and our clients. As one instance, our crew has made huge inroads with our clients and their suppliers on advancing plastic options for EV battery packs. We’re very excited in regards to the worth that we will ship to the business on this vital space. Supplies from our portfolio, together with flame retardant plastics reminiscent of STAMAX lengthy glass fiber polypropylene resin and SABIC PPcompound, can doubtlessly be sport changers and enablers within the improvement of subsequent era EV battery packs, supporting prolonged vary and improved total efficiency.

JA: How are you feeling about 2022 – each by way of enterprise prospects and extra usually?

AR: We’re optimistically inclined, so we definitely stay up for higher stability and one more full 12 months of alternatives to help our clients. With that stated, and primarily based on the outlook at this second, the business can anticipate to expertise additional variability in OEM manufacturing, and it will impression your complete worth chain. We additionally must proceed adapting in how we come collectively, nearly and bodily, till we will return extra carefully to how we operated earlier than the pandemic. Our groups are dedicated to work carefully with the business to beat these challenges.

JA: Is something rising as a specific concern by way of the outlook?

AR: Trying forward, client demand seems sturdy. This will bode nicely for future manufacturing. Nevertheless, as famous, we will doubtless anticipate to see continued variability in manufacturing due to the continuing chip scarcity and provide points. This will have a detrimental impression on the availability base. We are able to all agree that we’d like a provide chain wholesome sufficient to proceed offering all of the content material present in a automobile. To do this, we might profit from additional proactive collaboration between OEMs and suppliers to raised handle and deal with a few of these challenges.

JA: Do you’ve gotten a message for Simply Auto’s readers?

AR: We are able to make certain that 2022 will carry extra challenges and alter. With that stated, we as an business have confirmed how resilient, adaptable and artistic we will be. These qualities will see us by way of, and I do know our automotive crew at SABIC is set to do our half. We definitely have causes to be optimistic. Innovation in our business is wholesome and ongoing. The shift to electrification is accelerating and opening up new alternatives for a lot of. Producing automobiles which have much less impression on the planet is a mission more and more embraced by all actors throughout the worth chain. We’re excited to be a part of this seismic transformation with everybody within the coming years, realizing that the work we’re doing collectively is really fulfilling the next function for the world.

Patrick Moore

Patrick is our chief editor and he's very passionate about cars. He has a bachelor's degree in marketing and he studies journalism. His favorite brand is BMW and he drives an X5 series. When he's not writing for Vehiclenews.net, he enjoys spending time with his family and 9 years old son.

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