Saudi Basic Industries Corporation has no interest in taking over Swiss chemicals firm Clariant AG after halting talks last week on their high-performance plastics venture, announced SABIC Vice Chairman and CEO Yousef al-Benyan. Speaking at a press conference at the company’s headquarters in Riyadh, Benyan said that Saudi Aramco is in the process of purchasing a 70 percent stake in the company. He indicated that the deal is expected to be completed by the end of 2019 or during Q1 of 2020. Benyan explained that upon completing the measures required for Aramco to obtain the necessary approvals to complete the process, there will be joint work between SABIC and Aramco to identify and chart the course of the petrochemical industry in Saudi Arabia. Both companies will also work hard to achieve the 2025 strategy, which SABIC is working to establish. The CEO addressed tensions and trade disputes between the United States, China and other global markets this year, saying they have affected SABICs performance and profits. He then announced that SABIC has no interest in taking over Clariant and describing its 25 percent stake in the company as “a long term strategic investment.”  “We have no interest in a full takeover, if that’s your question, but we have interest to grow our share and make sure that we can bring positive growth and retain investment for SABIC and Clariant shareholders,” responded Benyan to a reporter’s question. The slowdown in global GDP growth coincides with a decline in petrochemical prices due to a significant increase in new supply capacity resulting in lower product prices and margins in key product lines, according to Benyan. He admitted that lower petrochemical prices have negatively impacted SABIC’s Q2 results, even though the company’s operational performance remains robust. “SABIC remains optimistic on industry fundamentals over the long term and we continue to invest for growth. We recently received all the regulatory approvals to increase our stake in Ar-Razi, the world’s largest methanol complex, to 75 percent and renewed our partnerships with Japan Saudi Arabia Methanol Company (JSMC) for a further 20 years.” The CEO announced that SABIC has obtained all approvals to establish a petrochemical joint venture project with ExxonMobil in the US Gulf Coast. SABIC also signed a Memorandum of Understanding (MoU) to scope a new solar PV-based power plant in Yanbu Industrial city that could have a potential capacity between 200 to 400 Mega Watt. This project would be the Kingdoms first large scale renewable energy project built for and by the private sector. Benyan explained that this initiative goes in tandem with SABIC’s wider sustainability efforts and in June the company launched its Sustainability Roadmap aligned to the United Nations Sustainable Development Goals (SDGs). This plan outlines SABIC’s ambitious targets relating to resource efficiency, climate change, the circular economy, food security, sustainable infrastructure, and preservation of the environment.  SABIC Q2 profit plunged to the lowest level since 2009 as demand for chemicals and plastics declined. Its shares dropped as much as 3.8 percent in Riyadh.  The companys net income, after Zakat and tax, dropped to $565 million by June 30, compared to $909.3 million during the same period of 2018, based on the company’s report distributed during the press conference. The report noted that the increase in global production of basic products, which negatively affected product prices and profit margins in the first half of 2019, is expected to continue to affect the companys profits during the second half as well. According to the report, total sales in the second quarter amounted to $9.5 billion, down 17.12 percent from the same quarter last year and a decrease of 4 percent compared to the previous quarter.