Sabic Review 2016

Teething problems

The ERP system covers materials made by the former GE Plastics, which Sabic acquired in 2007

A new computer system is causing delivery delays for some plastic resins made by Saudi Basic Industries Corp.

Several North American plastics processors and other market sources have reported the delays. Many of the concerns were around delayed deliveries of Sabic’s Lexan-brand polycarbonate.

Sabic spokesperson Susan LeBourdais says the firm in 2015 began working with customers, suppliers, and business partners to prepare for the new global enterprise resource planning (ERP) system. The new system is designed to further automate and simplify Sabic’s business processes, she explains.

Full implementation of the new system began in October.

"All of Sabic’s global manufacturing plants are operating and producing products, and we are shipping products to our customers," LeBourdais says. "However, this is a highly complex migration, and we are currently experiencing some challenges that are not uncommon when implementing a new ERP platform.

"We are working diligently with specialists and doing our utmost to resolve issues as quickly as possible," she added. "As always, the needs of our customers, suppliers, and business partners remain a critical focus, and we are doing all we can to minimise any supply interruptions and restore order fulfillment to normal service levels."

In the meantime, processors are scrambling to find replacement materials. Outside of Sabic, Covestro is the only materials firm that produces PC resin in North America.

The ERP system covers materials made by the former GE Plastics business, which Sabic acquired in 2007. In addition to PC, the new system affects deliveries of ABS, Ultem-brand polyetherimide, Noryl-brand PPO/PPE and other speciality resins and alloys.

"Sabic’s plants are running, but there are massive scheduling problems," one market source says. "Processors can’t tell when their material will be produced or get delivered or if it will match what they’ve ordered."




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