Posted on 08/02/2007 10:53:53 AM PDT by BGHater
Saudi Arabia has acquired a Massachusetts firm that is a leading supplier to the U.S. military.
The state-owned Saudi Basic Industries Corp. has purchased GE Plastics from General Electric for $11.6 billion. Based in Pittsfield, Mass., GE Plastics, with 11,000 employees, develops and manufactures plastic polymers, composites and polycarbonates used in U.S. military platforms, including fighter-jets, submarines and engines.
"SABIC's intention is to grow globally," SABIC chief executive officer Mohamed Al Mady said.
In May 2007, SABIC announced the acquisition of GE Plastics, regarded as the largest transaction ever completed in the United States by a Gulf Cooperation Council state, Middle East Newsline reported. Seventy percent of SABIC, which employees 17,000 people, is owned by the Saudi government, with Middle East investors accounting for the rest of the company.
SABIC, established in 1976, bested the U.S.-based Apollo Management and the Dutch firm Bassell for the acquisition of GE Plastics. The Saudi company offered $11.6 billion for GE Plastics.
The purchase of GE Plastics must be approved by the Committee on Foreign Investments in the U.S, aligned with the Treasury Department. In March 2006, CFIUS enabled the purchase of Britain's Peninsular and Oriental Steam Navigation Co., which operates the six major U.S. ports, by the United Arab Emirates.
Congress protested the sale of P&O on grounds of national security, and the UAE's Dubai Ports World backed out of the deal. DP World, however, succeeded in its bid to acquire Britain's Doncasters Group Ltd., a manufacturer of precision aircraft engine parts for the U.S. military.
Executives said GE Plastics maintains contracts with the U.S. Defense Department, Homeland Security Department and the National Aeronautics and Space Administration, or NASA. Congress has not raised objections to the SABIC purchase.
I’m not sure why, but this deal really bothers me. I just can’t see it as a good thing when those outside the US buy companies that are important to our military efforts. Maybe I’m just overly suspicious or wary, but I don’t see this as a good idea.
Now the infidels work for us!
How do you say OWNED in Arabic?
"One word: Plastics."
Of course! How else are they going to learn all our hi-tech composites and stealth technologies secrets unless they buy the companies?
dekcuf,..just...dekcuf
wisdom..at..work?
who..had..the..foresight..to..allow..such..a..transaction?
may.as.well..throw..the..towel..in..now,..brotherd..himini
time.to.shoot.wisdom.as.well..and..put.him.out.of.his.misery
“I just can’t see it as a good thing when those outside the US buy companies that are important to our military efforts.”
I used to do electronics design for weapons systems back in the mid 80’s. At that point in time, there were DoD rules that prohibited designing in anything that was not produced in the USA. I mean nothing, not even a resistor!
Twenty years later, many of the components used in these systems are not produced here at all.
In addition, many of the wafer fab lines for older IC’s are not in existence here in the US, because they are no longer commercially viable.
Even though the DoD keeps old mask sets for many of these IC’s producing them here would take a long time to start up.
I am absolutely amazed that the technology that allows us to maintain a technical edge has so cavalierly been allowed to slip out of our control.
I’m sure the same thing can be said about many other types of high tech components.
Any other weapons systems engineers out there that have an opinion on this issue?
“SABIC is owned by the Saudi Government (70%) and the private sector (30%). Private sector shareholders are from Saudi Arabia and other countries of the six-nation Gulf Cooperation Council (GCC)”
Gulf Cooperation Council (GCC): Created on May 25, 1981, the Council comprises the Persian Gulf states of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates. The unified economic agreement between the countries of the Gulf Cooperation Council was signed on 11 November 1981 in Riyadh. These countries are often referred to as Gulf Cooperative Countries.
Not all of the countries neighboring the Persian Gulf are members of the council. Iran is excluded, as is Iraq, although both nations have a coastline on the Persian Gulf. Yemen is currently (as of 2006) in negotiations for GCC membership, and hopes to join by 2016.
Sabic buys lots of stuff from us.
They will be a leader in the field rooting out the poor euros who need to buy feed stock.
It’s all ok with Bush.
Though he talked years ago about the “hydrogen economy” and recently about our “addiction to oil” he has done absolutely nothing to get us off oil, which funds the rise of Wahabism and other radicalism and splurges dollars upon Saudis and Gulf ARabs to buy our infrastructure.
I’m praying for the end of the Bush regime, but doesn’t look like anyone out there for us next with vision to take us out of the Mid East oil game.
God help us.
That’s right! The country that produced the devils of 911 are now producing products for our military.
The deal bothers me too. National Security? We are selling them 20 Billion dollars worth of Military Equipment. The Saudis’ buy a firm with, I would suspect some sensitive military secrets and no warning flags are going up.
I noticed that there was only 16 post out of 541 viewers. It makes me wonder why so few would voice their concerns.
If anyone but W was in office I think the responses would be higher and we would be ripen a new a-hole for allowing these things to happen. Maybe there is nothing sensitive about the Company the Saudis’ just bought, but the 20 billion, just doesnt make sense. Unless the 20 billion military equipment is rocks. Rocks are the only thing they should have. Seems like some of this 20 billion will be aimed at our Military over in the middle east.
I just hope we do not become apathetic and allow sales and purchases like this to continue. Maybe it is time for me to get a tin hat.
I read many posts and don’t reply but it’s not because I’m not concerned. It’s because I’m dizzy from shaking my head after reading some of the stuff that’s going on in the world.
I don’t understand if the “powers that be” don’t care about this country or if there’s an agenda we aren’t aware of.
If you find a good deal on a tin hat let me know because I’m beginning to wonder if I need one too.
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