TOKYO: Japan’s Prime Minister Shinzo Abe headed to Washington on Thursday with a massive investment package for US President Donald Trump, possibly designed to inoculate his country against presidential criticism.
Abe will dangle proposals linked to the creation of hundreds of thousands of jobs in the US, ranging from high-speed rail projects to private cash from Japanese companies.
Their White House summit on Friday will be followed by a game of golf at Trump’s palatial vacation estate in Florida, as the two men look to forge a personal relationship commensurate with their countries’ national ties.
“I want to hold a summit that can send a message saying the Japan-US alliance will strengthen further with President Trump,” Abe told reporters at the airport before departure.
“We will develop the two countries’ economies even more based on free and fair rules,” Abe added, stressing he wants to “confirm that” with Trump at the meeting.
Boosting employment in the US has been a key pillar of Trump’s economic nationalism and his pledge to “Make America Great Again,” a promise that often comes at the expense of other countries.
Japan has not been spared Trump’s trademark assaults in which he has claimed the US has been the patsy of predatory foreign economies, which he says are “killing us.”
Trump has singled out Toyota over a plan for a Mexican factory, said US automakers face discrimination in Japan and accused Tokyo of devaluing the yen for trade advantage.
Abe, deeply aware of Japan’s dependence on the US for both national security and as a key trade partner, rushed to meet Trump in New York shortly after his November election.
On that occasion he presented the property tycoon with a $4,500 golf club, but for this week’s formal get-together the stakes are higher and the gift much bigger.
Reports in the Japanese press suggest the “Japan-US Growth and Employment Initiative” could help to create 700,000 jobs through Japanese investment in US infrastructure and aims to create new markets worth $450 billion over the next decade.
It was not clear exactly what those new markets would be.
Newspapers have also said Japan’s massive Government Pension Investment Fund (GPIF) — the world’s largest with $1.2 trillion in assets — is expected to participate, putting up cash for US infrastructure and other projects.
The organization, which is legally independent from the Japanese government, has denied the reports.
Electronics maker Sharp reportedly said Wednesday ahead of Abe’s visit that it is considering building a new plant to produce LCD panels in the US.
Abe has so far been coy on the details of what he is taking with him, but is forthright about wanting to support Trump’s economic plans.
“I want to talk to (Trump) substantially about how Japan can cooperate on infrastructure programs the president is aiming for,” he said in parliament.
It remains unclear, though, how detailed a package Abe can offer given Trump himself has yet to make much headway on his own infrastructure and pro-growth plans.
And while Abe is taking along his foreign and finance ministers, no business executives are going, officials said.
Takashi Kawakami, professor of international politics at Takushoku University in Tokyo, said Abe is going to have to walk a fine line in trying to please the US president while standing up for his own industries.
“Trump is unpredictable and may make tough requests in exchange for favorable treatment, like in a business deal,” he said.
“Abe has to insist on what he has to insist on, including trade and foreign exchange issues.”
Japan’s Abe heads for Trump summit with jobs package
Japan’s Abe heads for Trump summit with jobs package
SABIC sells European petrochemicals, engineering plastics units in $950m portfolio restructuring
RIYADH: Saudi Basic Industries Corp. is selling two overseas businesses for a combined $950 million as the world’s biggest petrochemicals maker continues to streamline its portfolio and redeploy capital toward higher-return segments.
The Riyadh-based company agreed to sell its European petrochemicals business to investment firm AEQUITA for $500 million and its engineering thermoplastics operations in the Americas and Europe to turnaround specialist Mutares for $450 million, SABIC said in a release.
The plastics deal includes an earn-out linked to future cash flow and a potential resale.
The transactions are part of SABIC’s portfolio optimization program launched in 2022, which has already seen divestments including Functional Forms, Hadeed and Alba. The company aims to sharpen its focus, improve returns, and free up capital for higher-growth opportunities.
Abdulrahman Al-Fageeh, CEO of SABIC, said: “This strategic approach allows us to actively reshape our portfolio and sharpen our focus on areas where SABIC has clear and sustainable competitive advantages in a rapidly changing landscape.”
He added: “I am pleased that both AEQUITA and Mutares will work with us in the future to ensure that we continue to serve our global customers in a seamless manner.”
The European petrochemicals business produces ethylene, propylene, various grades of polyethylene, polypropylene and polymer compounds. Its manufacturing footprint includes sites in the UK, the Netherlands, Germany and Belgium.
The engineering thermoplastics business in the Americas and Europe produces polycarbonate, polybutylene terephthalate and acrylonitrile butadiene styrene. Its facilities are located in the US, Mexico, Brazil, Spain and the Netherlands.
“The Board endeavored to achieve these transactions, which represent a significant milestone in the execution of our strategy to further optimize our portfolio and maximize shareholder value by enhancing the Company’s cash generation capacity and achieving the highest possible return on our global businesses,” said Khalid Al-Dabbagh, chairman of the board of directors of SABIC.
Chief Financial Officer Salah Al-Hareky said the transactions demonstrate a “disciplined approach” to capital allocation and active portfolio management, aimed at improving return on capital employed and free cash flow.
Despite the divestments, SABIC said it will maintain strategic market access through exports to Europe and the Americas, while preserving its focus on technology, innovation and customer service.
Both buyers have committed to ensuring business continuity, retaining workforce expertise and maintaining high safety and customer service standards during the transition.
Axel Geuer, president and co-CEO of AEQUITA, said: “This transaction represents a further step in the expansion of our European chemicals platform.”
He added: “The assets are highly synergistic with the olefins and polyolefins business we recently acquired from LYB; with complementary markets, infrastructure and operational capabilities, we see substantial potential to realize synergies and drive operational improvements across both businesses.”
Geuer, noted that under AEQUITA’s active ownership model, the focus will be on supporting the teams on the ground, ensuring a seamless integration, and building a scaled, competitive platform positioned for long-term, sustainable value creation.
Robin Laik, co-founder and CEO of MUTARES, said: “The Engineering Thermoplastics (ETP) business in the Americas and Europe has a highly skilled workforce and strong customer relationships.”
He added: “Under focused ownership, our priority is to ensure continuity, support employees through the transition, and unlock the full potential of our asset base as a standalone ETP platform.”
The deals are subject to customary closing conditions, regulatory approvals, and, where applicable, employee consultation processes.
