Iran’s strike on Saudi chemical plant triggers tech price shock
Saudi chemical maker SABIC has become a choke point in the global tech economy after Iran struck its Jubail complex earlier this month, knocking out production of a specialized plastic used to make circuit boards inside everything from smartphones to AI servers.
The material – PPE resin – helps electronic circuits run safely and reliably. SABIC supplies most of the global market, so when it went offline, manufacturers couldn’t get a key ingredient needed to build devices, Reuters reports.
Printed circuit board prices have jumped sharply as companies scramble for alternatives, with some increases nearing 40% this month alone.
The global printed circuit board industry is projected to increase by 12.5% to reach $95.8 billion in 2026, according to a recent report from Prismark.
Meanwhile, farmers worldwide are facing a fresh spike in fertilizer prices because of the Strait of Hormuz shutdown, which has halted exports of key inputs like urea, sulphur and ammonia from Qatar and other producers, Reuters reports.
Saudi Arabia’s Sabic considers IPO for its industrial gas unit
Saudi Arabia’s state-owned chemical maker Sabic is considering selling shares of its industrial gas unit as part of a rigorous review of its operations after a string of quarterly losses.
An IPO for National Industrial Gasses Co. on Riyadh’s Tadawul stock exchange is among the “strategic options” being evaluated, Sabic said today in a statement, confirming earlier reports that a share sale was being discussed.
Sabic, a maker of petrochemicals and fertilizers that is 70% owned by Saudi Aramco, has posted losses in its past two quarters, prompting discussions about restructuring the company to focus on its core businesses. Sabic shares are down 16% this year.
Preliminary consultations with investment banks about selling shares of the gas unit – in which Sabic owes a 74% stake – included talks with Lazard, HSBC, JPMorgan Chase and Morgan Stanley, Bloomberg reported in May.
Sabic, short for Saudi Basic Industries Corp., said in today’s statement that it will offer details on its restructuring in the third quarter and aims to complete the plan by the end of this year.
