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GCC Plastic Processing Industry


GCC Plastic Processing Industry April 2013 Nexant 22nd Floor, West Tower Bahrain Financial Harbour Manama Bahrain

Nexant limited 1st Floor, 1 King’s Arms Yard London EC2R 7AF UK

Tel: + 973 1750 2962 Fax: + 973 1750 3030

Tel: + 44 20 7950 1600 Fax: + 44 20 7950 1550

Disclaimer “This presentation was prepared by Nexant Limited (“Nexant”). Except where specifically stated otherwise in the presentation, the information contained herein was prepared on the basis of information that is publicly available and has not been independently verified or otherwise examined to determine its accuracy, completeness or financial feasibility.Neither NEXANT, nor any person acting on behalf of NEXANT assumes any liabilities with respect to the use of or for damages resulting from the use of any information contained in this presentation. NEXANT does not represent or warrant that any assumed conditions will come to pass. This presentation is integral and must be read in its entirety. The presentation is given on the understanding that the recipient will maintain the contents confidential except for internal use. The presentation should not be reproduced, distributed or used without first obtaining prior written consent by NEXANT. This presentation may not be relied upon by others. This notice must accompany every copy of this presentation.”


GCC Plastics Processing Industry Introduction The GCC has experienced a period of rapid growth in recent years, propelling itself from its original status as an oil and gas producer, to become a leading olefins and polymers producer. Polymer production capacity has soared during the past five years increasing from 8.8 million tons in 2007 to 19.9 million tons in 2012, along with consumption which has risen on average by ten percent per year from 2.8 million tons in 2007 to 4.5 million tons in 2012. This level of growth is forecast to continue over the next five years at annual rate of around eight percent. Polymer Consumption in GCC 1800 1600

Thousand tons

1400 1200 1000 800

600 400 200 0

PE

PP 2007

PVC

PET

PS

2012

XLS: BD/G/GCAP

The region is now moving onto the next stage of its development programme, with a special focus on downstream industries and plastics conversion. Leading the way are Saudi Arabia and the UAE which have introduced a series of initiatives to boost growth of small and mediumsized industries (SMEs) for plastics processing. In Saudi Arabia, the Saudi Clusters Development Programme has worked well in creating key industrial cities but the government is ambitious for more, aiming to make KSA a world top-10 exporter of plastics, and creating 17 000 additional plastics and packaging sector jobs. As part of its Vision 2020 agenda, the Saudi government plans to set up 14 new industrial cities in the country over the next 10 years, which will among other things, promote investment in the plastics conversion industry. Although the country has around 900 plastics processors, only 20 are considered large and ten as world-scale (consuming over 50 000 tons per year of resin). Abu Dhabi in the UAE is also fast emerging as an important hub for plastics converters with the introduction of the Abu Dhabi Polymers Park, and is aggressively encouraging foreign investment.

1


GCC Plastics Processing Industry

Industrial Parks Plastics processing is geographically concentrated with around 90 percent of plastics conversion in Saudi Arabia taking place across five industrial parks developed by government agency Saudi Industrial Property Authority (Modon). The UAE also has sites in Dubai and Sharjah. Major plastic clusters in the region are currently: 

Dammam 1/2, Saudi Arabia

Jeddah 1/2, Saudi Arabia

Riyadh, Saudi Arabia

Rabigh

Dubai and Sharjah (including the Jebel Ali Free Zone), UAE

Major parks under development include: 

Rabigh Conversion Industrial Park (RCIP). Petro Rabigh plans to build another plasticsconverting park similar to its existing site. Petro Rabigh, a joint venture between stateowned Saudi Aramco and Japan's Sumitomo Chemical, was formed in 2005. The company’s main activity is in refining and petrochemical production but as part of the government’s strategy to boost the conversion industry, Petro Rabigh established its first plastic conversion park in Saudi Arabia, the 2.5 million square metres Rabigh PlusTech Park (RPTP), located directly next to the Petro Rabigh refinery. The Park has attracted many companies taking advantage of the incentives provided by the Saudi government to encourage the local conversion industry. It offers low utility and land lease rates, guaranteed petrochemical feed from Petro Rabigh and provides numerous support services.

Abu Dhabi Polymer Park. Located in the Industrial City of Abu Dhabi (ICAD), the park is housed next to the Borouge petrochemical and polymers complex, and offers incentives such as duty-free imports and exports, and competitively priced and welldeveloped infrastructure and utilities.

Plaschem Park. Managed by the Royal Commission of Jubail and Yanbu, Saudi Aramco also plans to develop a plastics park in Jubail next to Sadara Chemical (its joint venture petrochemicals project with Dow Chemical) to create a fully integrated manufacturing complex. According to MODON (the Saudi Industrial Property Authority) which was set-up in 2001 to develop industrial cities throughout Saudi Arabia, there are also plans for further developments in the following locations: Dammam 3, Jeddah 3, Al-Kharj (phase two), Sudair (phase two) and Al-Qassim 2. MODON was set-up in 2001.

The plastics parks in Saudi Arabia and UAE account for more than 60 percent of plastics processed in the GCC and around 70 percent of the 50 largest processors. Minor clusters of plastics processing are appearing around resin producers in other parts of the region in Oman and Qatar, but there is very little processing activity outside these industrial parks. Pipe production is the exception in being geographically dispersed, as generally production takes place close to the point of installation.

2


GCC Plastics Processing Industry

GCC Polymer Industry The petrochemical industry in the Middle East has been commonly based on light feedstock, such as ethane. For that reason, ethylene and its derivatives account for the largest proportion of the petrochemical industry. Production of commodity grade polyolefins has remained the mainstay of the industry. Saudi Arabia is by far the largest polyolefin producer in the region and is expected to remain the leader, taking into account all the proposed projects currently under various stages of development. The United Arab Emirates is fast emerging as a major producer in the region. Polyethylene (PE) Supply Polyethylene production capacity in the GCC is estimated at 11.5 million tons in 2012. Over the past five years, GCC capacity has grown at an annual average rate of 13.7 percent; and with several further developments planned, particularly in the UAE and Saudi Arabia, capacity is forecast to rise at an annual rate of 6.5 percent in the next five years. Out of the four producing countries (Saudi Arabia, Kuwait, Qatar and UAE), Saudi Arabia is by far the largest producer with almost 70 percent of the region’s production capacity. At the end of 2012, Saudi Kayan began production at its 300 000 tons per year LDPE plant in Al Jubail and Saudi Polymers Company started-up its 1.1 million tons per year LLDPE/HDPE swing plant also at Al Jubail. But the other major developments due on-stream in the next few years include the Sadara Petrochemical complex which is scheduled to produce 400 000 tons per year of LDPE and 800 000 tons per year of LLDPE. Sadara (a joint venture between Dow Chemical and Saudi Aramco) is located in the Al Jubail Industrial Zone, is expected to come on-stream by mid-2015 with full project completion by 2016. Petro-Rabigh is also expanding the capacity of its existing 1.3 million tons per year ethane cracker, as well as building a new aromatics complex using additional ethane and naphtha as feedstock for a variety of downstream plants including among a range of products, LDPE/EVA. The facility is also due on-stream in 2016. In the UAE, having completed the second phase of its complex in 2010, Borouge is now constructing Phase 3 of its new facility which includes two 540 000 tons per year HDPE/LLDPE swing plants using BORSTAR technology and a 350 000 tons per year LDPE plant. The LDPE plant will produce XLPE for wire and cable applications. The complex is scheduled to start full commercial operations mid-2014. In Kuwait, the Kuwaiti company, Petrochemical Industries Company (PIC) announced plans as part of its joint venture with EQUATE to develop a 1.4 million tons per year cracker project at their joint Olefins III site. Start-up is scheduled for 2017, using both ethane gas and naphtha as feedstock. The project will also produce one million tons per year of polyethylene and 400 000 – 600 000 tons per year of polypropylene and possibly a monoethylene glycol (MEG) plant. The plants would be located at Al Zour in Kuwait, alongside a fourth refinery being planned by Kuwait Petroleum Corp (KPC), from which the Olefins III cracker can source naphtha.

3


GCC Plastics Processing Industry

At the end of 2012, QAPCO brought on-stream a 300 000 tons per year LDPE plant in Qatar, bringing its total LDPE capacity from 400 000 tons per year to 700 000 tons per year in 2013. Qatofin is also looking to expand its 450 000 tons per year LLDPE plant to 600 000 tons per year in 2014. PE Production Capacity in the GCC 18000 16000

Thousand tons

14000

12000 10000 8000 6000 4000 2000 0 2007

2008

2009 Kuwait

2010

2011

Qatar

2012

2013

2014

Saudi Arabia

2015

2016

UAE

XLS: BD/G/GCAP

PE Production Capacity in GCC by Country (thousand tons)

Bahrain Kuwait Oman Qatar Saudi Arabia UAE Total

LDPE 380 220 600

2007 LLDPE HDPE Total 270 500 770 - 450 830 2 450 1 215 3 885 - 580 580 2 720 2 745 6 065

LDPE 490 695 1 185

2012 LLDPE HDPE 300 500 450 800 3 850 3 335 - 1 120 4 600 5 755

Total 800 1 740 7 880 1 120 11 540

Annual Average Growth Rate (2007-2012), % LDPE LLDPE HDPE Total 2.1 - 0.8 5.2 - 12.2 16.0 25.9 9.5 22.4 15.2 - 14.1 14.1 14.6 11.1 16.0 13.7

4


GCC Plastics Processing Industry

Demand The polyethylene market has shown an average annual growth rate of 6.6 percent since 2007 to reach 1.7 million tons in 2012. In the next five years, stronger growth of 7.7 percent is forecast as the market continues to develop. By far the largest application for polyethylene is in packaging applications which uses combinations of LDPE, LLDPE and HDPE. The main items within this sector are shopping bags, garbage bags and heavy duty sacks. One of the most notable applications is for heavy duty bags which are used for the packaging of polymers which are mainly exported. Heavy duty sack demand will continue to rise strongly in response to the growth in production of polymers, fertilizers, and other commodity chemicals in Saudi Arabia. PE blown and cast films are by far the largest production processes, with blown film production currently much higher than cast film. Blown film extruders mostly are mono-layers however all the largest converters are currently investing in new multi-layer extrusion processes. Cast films mainly produce stretch films for the local and for export markets. The constant substitution of shrink palletizing by stretch hood is ongoing and propelling more local demand for stretch films. In blow moulding, HDPE is mainly used for bottles and containers. The market in blow moulding is steady albeit at a moderate growth level since it has suffered in the past few years from heavy competition from PET. Injection moulding applications range from caps and closures to crates to white goods items. Mainly HDPE is used in these applications. Although converters still rely on foreign suppliers for moulds and designs, there has been good growth in these applications in the past few years. Pipe and conduit is another growth area for polyethylene. Although the market in Saudi Arabia has been centred on PVC pipes, in 2008 the government has started to specify PE-100 pipes for many potable applications. This has spurred stronger growth for pipes and fittings in HDPE which will require bi-modal resins. Extrusion coating is still very small in GCC and only used by few converters to coat on paper or aluminium. SABIC plants do not produce the resin although it may be sourced from SABIC Europe. QAPCO with its autoclave process does produce the proper LDPE resin for this application. For wire and cable, PE has been a major success and growth has been steady. Although there are only handful of converters, the demand for cross-linked PE for medium and high voltage has been extremely strong. The introduction of the Borouge LDPE plant in 2014, which will produce XLPE for wire and cable applications, should help support local demand. Rotomoulding has seen good growth related mainly to construction and infrastructure projects. Hence, large tanks, reservoirs, and heavy duty drums have been made by rotomolding. This sector will continue to grow at a moderate rate since it can only be used locally in GCC and cannot be exported. Other extrusion applications such as foam extrusion are small markets.

5


GCC Plastics Processing Industry

PE Demand in the GCC by Country 1200

Thousand tons

1000 800 600 400 200 0

Bahrain

Kuwait

Oman

Qatar

2007

Saudi Arabia

UAE

2012

XLS: BD/G/GCAP

PE Demand in the GCC by End Use Application, 2012 (1.7 million tons) 5%

1% 3% 2%

12%

13% 64%

Film Other Extrusion Others

Blow Moulding Rotomoulding

Injection Moulding Pipe and Conduit

XLS: N:\Business_Dev\Bahrain\GPCA_Plastics_Conference_2013\White Paper\Copy of

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GCC Plastics Processing Industry

PE Demand in the GCC by End-Use Market, 2012 (1.7 million tons) 3%

2%

4%

15%

76% Packaging

Polypropylene

Construction

Consumer Goods

Textiles

Others

XLS: BD/G/GCAP

Supply In 2012, the GCC polypropylene production capacity stood at 6.3 million tons with Saudi Arabia accounting 80 percent of capacity. The other three producing countries are Kuwait, Oman and UAE. In Saudi Arabia, the period of rapid growth between 2007 and 2012 where annual growth averaged the 27.6 percent per year, has now levelled off with the only new development being the Saudi Polymer Company 400 000 tons per year plant which came use on-stream at the end of 2012. Other major Saudi producers include SABIC, (Ibn Zahr, Yanpet, Yansab, Saudi Kayan), APPC and Petro Rabigh. In the next five years, the 1.1 million tons per year PP plant at Borouge will see the UAE become a significant producer in the region. Oman Polypropylene has a 340 000 tons per year plant which has been operating in Sohar in Oman since 2006. PIC in Kuwait operates a long-standing 150 000 tons per year plant.

7


GCC Plastics Processing Industry

PP Production Capacity in the GCC 8000 7000

Thousand tons

6000 5000 4000

3000 2000 1000 0 2007

2008

2009

Saudi Arabia

2010

2011

2012

Kuwait

2013

2014

Oman

2015

2016

UAE

XLS: BD/G/GCAP

PP Production Capacity in the GCC by Country (thousand tons)

Bahrain Kuwait Oman Qatar Saudi Arabia UAE Total

Actual Estimate 2007 2012 120 150 340 340 1 365 4 965 800 1 825 6 255

Annual Average Growth Rate, % 2007-2012 4.6 29.5 27.9

Demand Polypropylene consumption has risen annually by 6.3 percent from 2007 to 2012 where consumption is estimated at 785 000 tons. Further growth of eight percent is forecast in the next five years as the region develops its downstream industries especially as block and random copolymer grades become more available for use in consumer goods and appliances which are under-developed markets. The two major sectors for PP usage are in fibre for textiles and BOPP film. Within textiles, the main application is in carpet manufacture which is a major export industry, (local producer, Saudi Carpet, is reportedly the fifth largest global supplier). The second application is woven PP used for heavy duty sacks, IBCs for resins, fertilizers, grains, etc. The third application is non-woven PP which is also mainly for export and is led by SGN of Dammam and Al-Saaf of Al-Hasa.

8


GCC Plastics Processing Industry

Film packaging is mainly BOPP films. Taghleef Industries has invested heavily in BOPP production and currently has 135 000 tons per year production capacity at plants based in Egypt, UAE and Oman. Rowad Plastics in Saudi Arabia (TASNEE) has also increased BOPP production from 35 000 to 70 000 tons per year in 2013. There is some production of cast PP (cPP) but still at a small level. There is only a small amount of blown PP films production. In injection moulding, PP is used in many applications such as pails, in-mould labelling, etc. However, there is little widespread use of PP due to lack of consumer industries for example in the electrical, automotive, white goods industries. PP Demand in the GCC by Country 500 450 400

Thousand tons

350 300 250 200 150

100 50 0

Bahrain

Kuwait

Oman

Qatar

2007 XLS: BD/G/GCAP

Saudi Arabia

UAE

2012

PP Demand in the GCC by End-Use Application (785 000 tons) 3%

2%

4%

15%

76% Packaging

Construction

Consumer Goods

Textiles

Others

XLS: BD/G/GCAP

9


GCC Plastics Processing Industry

PP Demand in the GCC by End-Use Market, 2012 (785 000 tons) 6% 7% 3% 41% 9%

34% Textiles

Packaging

Consumer Goods

Construction

Other Extrusion

Others

Polyvinyl Chloride (PVC) Supply XLS: BD/G/GCAP

PetroKemya (a SABIC affiliate) is the only producer in GCC, and operates a 436 000 tons per year plant producing mainly suspension PVC (S-PVC) and around 20 000 tons per year of emulsion PVC (E-PVC). Qatar Vinyl Company (QVC) produces EDC and VCM but is not forward integrated in PVC. There are currently no reported plans of future expansions. Overall, the region is a net major importer of PVC in the order of 300 000 tons per year, with SABIC exporting very little outside the GCC. Demand PVC demand has risen by five percent since 2007 to its current 2012 level of 707 000 tons, and demand is forecast to grow over the next five at an annual rate of 8.7 percent as major infrastructure/construction projects are realised. Demand for PVC is driven by the construction industry in pipe and cable applications. Other rigid applications include profiles which are mainly used for window frames and doors. Pipe demand has been growing strongly on the back of the construction boom, particularly in sewerage where it has a high share of the market. PVC also has a high market share in ducting although it is losing ground to PE. The potable water market has traditionally been shared between PVC, GRP (glass reinforced unsaturated polyester resin), clay and metal - clay and GRP having a surprisingly high market share due to strong lobby support. However, since the introduction PE100 HDPE in the region with new production from Borouge, Petro Rabigh and SABIC over the past 10 years, the use of PVC, especially in potable water applications, has been questioned. In Saudi Arabia, the decision was made in 2008 to remove PVC from the preferred list of materials for potable water pipe network. The forthcoming availability of copolymer PP may also begin to erode PVC in sewage applications.

10


GCC Plastics Processing Industry

Virtually all PVC in the GCC is consumed in the construction industry in pipe, cable and profiles.

Thousand tons

PVC Demand in the GCC by Country 500 450 400 350 300 250 200 150 100 50 0

Bahrain

Kuwait

Oman

Qatar

2007

Saudi Arabia

UAE

2012

XLS: BD/G/GCAP

PVC Demand in the GCC by End-Use (707 000 tons) 4% 2% 9%

85% Pipe

Cable

Other Cable Applications

Other Rigid Applications

XLS: N:\Business_Dev\Bahrain\GPCA_Plastics_Conference_2013\White Paper\Copy of

11


GCC Plastics Processing Industry

Polystyrene (PS) Supply There are currently only two producers of polystyrene in the GCC. Petrokemya operates two plants at Al-Jubail with a total production capacity of 140 000 tons per year, as well as a smaller 40 000 tons per year EPS plant; and Saudi Polymers Company (jointly owned by Petrochem and Chevron Phillips, with 65 and 35 percent respectively) which opened its 200 000 tons per year capacity Al-Jubail facility in October 2012. Polystyrene Production Capacity in the GCC (thousand tons) Actual 2007 GP/HIPS Petrokemya 140 Saudi Polymers CompanyEPS Petrokemya 40 Total 180

Estimate 2012 140 200 40 380

Annual Average Growth Rate, % 2007-2012 16.1

Demand The polystyrene industry has shown moderate growth over the past five years (4.2 percent) as the major industries in which it finds application (electrical and household goods) are still fairly under-developed. The overall PS market is estimated at 219 000 tons in 2012 and is forecast to maintain its current level of growth over the next five years. Consumption of polystyrene in the Middle East consists largely of HIPS in electrical and household appliances. Saudi Arabia is the only significant consumer of polystyrene in the region as it looks to expand non-oil industrial sectors and diversify their economies. These industrialisation policies, along with rising income levels and population growth, suggest strong growth for the Middle Eastern polystyrene market. The EPS market in the Middle East is fairly small due to limited use of building insulation and the small-scale packaging industry. The construction boom in the United Arab Emirates has also provided sufficient demand for some converters to become established. Future demand growth is expected to stay above GDP growth rates supported by both the packaging and construction sectors.

12


GCC Plastics Processing Industry

Total PS Demand by Country 140 120

Thousand tons

100

80 60 40 20 0

Bahrain

Kuwait

Oman 2007

Qatar

Saudi Arabia

UAE

2012

XLS: BD/G/GCAP

GP/HIPS Demand by End-Use Market, 2012 (156 000 tons) 23%

4% 8%

Packaging

65%

Consumer Goods

Construction

Other

XLS: BD/G/GCAP

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GCC Plastics Processing Industry

EPS Demand by Country 40 35

Thousand tons

30 25 20 15 10

5 0

Bahrain

Kuwait

Oman

Qatar

2007

Saudi Arabia

UAE

2012

XLS: N:\Business_Dev\Bahrain\GPCA_Plastics_Conference_2013\White Paper\Copy of

EPS Demand by End-Use Market, 2012 (63 000 tons) 10%

90% Construction

Packaging

XLS: BD/G/GCAP

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GCC Plastics Processing Industry

Polyethylene Terephthalate (PET) Supply In 2012, total production capacity in the region stood at 1.3 million tons per year. There are three manufacturers producing PET melt phase for PET bottle grade production - Ibn Rushd (Saudi Arabia), Octal (Oman) and JBF RAK (UAE). Octal and Ibn Rushd have major new expansions planned over the next year which will increase production capacity to over 2 million tons per year. Octal has expanded rapidly since it first started production in 2009. Following the start-up of Octal’s new capacity at the end of 2012, Octal has switched all of its bottle grade production to the new 400 000 tons per year line, reserving sheet production to its older lines. PET Melt Phase Production Capacity in the GCC 2500

Thousand tons

2000 1500 1000 500 0 2005

2006

2007

2008

2009

2010

Saudi Arabia

2011 UAE

2012

2013

2014

2015

2016

Oman

XLS: BD/G/GCAP

PET Melt Phase Production Capacity in the GCC (thousand tons)

Bahrain Kuwait Oman Qatar Saudi Arabia UAE Total

2007 229 93 322

2012 560 330 360 1 250

Annual Average Growth Rate, % 2007-2012 7.6 31.1 31.2

15


GCC Plastics Processing Industry

Demand Demand for melt phase PET stood at 1.1 million tons in 2012 having risen sharply from 243 000 tons in 2007 following the rapid explosion of production capacity over the past five years. There is growing capacity for film production in the Middle East. JBF RAK has operated a large BOPET plant as part of a large complex also producing bottle grade PET from several years at Ras Alkhaimah in the United Arab Emirates. Ibn Rushd, the SABIC subsidiary also known as the Arabian Industrial Fibers Company, was originally focused on PET fibre production, but has subsequently converted all of its capacity to produce bottle grade resin. Ibn Rushd has another major PET bottle resin plant under development for 2013 start-up. Ibn Rushd’s withdrawal from fibre production highlights the critical importance of low labour costs, as even a well-integrated company with feedstock and utility advantages was unable to generate satisfactory returns. Octal has had a major influence on the market, producing bottle and sheet grades. The Middle East mainly produces PET for bottle grade use, and fibre production is now restricted mainly to Iran and Turkey. PET demand in Kuwait, Qatar and Bahrain is less than 10 000 tons per year. PET Melt Phase Demand in the GCC by Country 600

Thousand tons

500 400 300 200

100 0

Bahrain

Kuwait

Oman 2007

Qatar

Saudi Arabia

UAE

2012

XLS: BD/G/GCAP

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GCC Plastics Processing Industry

PET Melt Phase Demand in the GCC by End-Use (1.1 million tons)

33%

67%

Bottle Grade

Film/Sheet

XLS: N:\Business_Dev\Bahrain\GPCA_Plastics_Conference_2013\White Paper\Copy of

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GCC Plastics Processing Industry

GCC Plastics Processing Industry Overview of the Major Plastic Processors There are over 1000 sites carrying out primary processing of plastics, converting polymer granules or powder in the GCC. However, to assess these sites, a minimum site capacity of 100 tons per year was used for moulding businesses and 500 tons per year for extrusion. Saudi Arabia has the largest number of convertors with reportedly 900 sites with almost all focused on domestic or GCC sales. The UAE has the second largest number of converters and is rising fast. These two countries account for 80-85 percent of conversion sites, and the 50 largest companies account for 70 percent of total plastics processing tonnage. GCC Plastics Processing Capacity of the 50 Largest Companies (thousand tons) Company Harwal Group NAPCO Taghleef

Country UAE Saudi Arabia Oman/UAE

Al Sorayai Al Watania Astra Industrial Group Flex Middle East Gulf Packaging Industries Gulf Packaging Systems Intergulf (IFFCO) Obeikan Industrial Investment Group Olayan Group Rowad Plastics (TASNEE) Saudi German Company Savola Group Zamil Plastics

Saudi Arabia Saudi Arabia Saudi Arabia UAE Saudi Arabia Saudi Arabia UAE KSA & UAE Saudi Arabia Saudi Arabia Saudi Arabia Saudi Arabia Saudi Arabia

Al Abdullatif Al Othman Group (Ultrapak/SAAF/Plastico) Al Tayar Amiantit Arabian Gulf Manufactures Filling & Packaging Materials MFG CO (FIPCO) New Product Industries (Neproplast) Nova Industries LLC Riyadh Cable

Saudi Arabia Saudi Arabia Saudi Arabia Saudi Arabia Saudi Arabia Saudi Arabia Saudi Arabia UAE Saudi Arabia

101-150

51-100

21-50

< 20

18


GCC Plastics Processing Industry

GCC Plastics Processing Capacity of the 50 Largest Companies (Cont.) Company Saudi Cable Company Saudi Plastic Factory Al Moajil Sack Factory Al Sharq Factories Hepworth PME Muna Noor National Factory For Plastic Industry Packaging & Plastics Industries Packaging Products Company Tencate Thiolon Middle East (Mattex Lesiure)

Country Saudi Arabia Saudi Arabia Saudi Arabia Saudi Arabia Qatar/UAE Oman Saudi Arabia Kuwait Saudi Arabia UAE

Ah Ahli Al Amal Plastic Factory Al Manar Plastic Products Co. Arifco Bischof & Klein Middle East Enerplastics Fujairah Plastic Factory Genoa Plastics Industries Jeddah Cable Co Kuwait Plastics Manama Packaging National Plastic Factory Precision Plastic Products Qatar Plastic Products

UAE Saudi Arabia Saudi Arabia Saudi Arabia Saudi Arabia UAE UAE Kuwait Saudi Arabia Kuwait Bahrain Saudi Arabia UAE Qatar

101-150

51-100

21-50

< 20

Investment Opportunities The vast majority of plastics processing production finds its end-application within the GCC led by packaging and construction applications. The challenge investors now face is to determine the extent to which they will serve the local domestic market or supply the international one. Major other areas for future investment will include engineering polymer compound processing, with the future local availability of: PA6, PA6.6, POM, PC, ABS, PMMA and other polymers. Additionally, the local availability of thermoplastic elastomers will also broaden the investment opportunities for local and international processors in the region.

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Nexant Overview Nexant is an independent international energy consulting company with over 600 professional consultants in offices located around the world, including San Francisco, New York, Houston, London, Bahrain, Bangkok, Shanghai, Tokyo, Seoul, Beijing, and Buenos Aires. Nexant includes Chem Systems which was acquired in 2001 and has been providing management consulting services to the petroleum and chemical industry since 1964. Nexant offers its clients independent insight and understanding. Our extensive technical experience and resources, provides expertise to clients in several areas, including: 

Strategy and business planning

Master planning/feasibility studies

Techno-economic and commercial analyses

Transaction related support (project finance, M&A, privatisation, private equity)

Financial evaluation Graham Hoar holds the position of Vice President, Middle East. He leads Nexant’s Middle East energy and chemicals consulting activities and has extensive experience of working with a broad range of clients across Europe, Middle East, Africa and Asia. Graham has strengths in strategic planning, commercial and techno-economic analysis as well as extensive global experience in project and business evaluations/privatisations. He has also provided commercial and technical due diligence support for M&A and project finance activities. Graham also leads Nexant’s global activities in C1 Chemicals & Fertilizers.

Manuel Asali: Principal, is responsible for Nexant’s Business Development in the Middle East with special emphasis on Basic Chemicals such as C1, olefins and aromatics. Manuel has wide experience in market and strategy studies with expertise in forecasting market dynamics and profitability/pricing as well as strategy development in the Middle East. He previously worked for SABIC and headed its Business Strategy area in Chemicals. Manuel will be Project Manager for this assignment.

David Lines is a Principal in Nexant’s Energy and Chemicals Consulting Practice, based in London. He has extensive experience in business and marketing strategy, market research and industry analysis as well as polymer and plastics R&D, and new product development of finished goods. Mr Lines has also been involved in plastics processing and plant operations and plastics compounding and masterbatch management (Western Europe, Asia & Middle East). Prior to Nexant, he was the Director of Plastics & Packaging Cluster for the National Industrial Cluster Development Program (NICDP) under the Ministry of Commerce & Industry Saudi Arabia.


GCC Plastics Processing Industry

Contact Information Bahraini Graham Hoar Vice President Middle East +973 1750 2962 ghoar@nexant.com David Lines Principal + 44 (20) 7950 1525 dlines@nexant.com

Gulf Petrochemicals and Chemicals Association (GPCA) Dr. Abdulwahab Al-Sadoun Secretary General P.O. Box 123055, Aspect Tower, Business Bay Dubai, United Arab Emirates Tel: +971-4-451-06-66 Fax: +971-4-451-07-77 sadoun@gpca.org.ae

About The Gulf Petrochemicals and Chemicals Association The Gulf Petrochemicals and Chemicals Association (GPCA) is a dedicated and non-profit making association serving all its members with a variety of data, technical assistance and resources required by the petrochemicals and chemicals industry. GPCAâ&#x20AC;&#x2122;s mission is singular and specific in that it intends to support the growth and sustainable development of the petrochemical and chemical industries in the Gulf in partnership with its members and stakeholders and be both a sounding board and a meeting point for debate and discussion. It is the first such association to represent the interests of the industry in the Middle East and it has brought a major dimension to its task by creating both a forum for discussion and a place where likeminded people can meet and share concepts and ideas. Since its inception in March 2006, the GPCA has earned the enviable reputation for steering the regional industry towards a whole new level of co-operation and raising the standard in terms of common ground interests. Additional information is available at www.gpca.org.ae. The views expressed herein do not purport to reflect or represent the formal and collective views of GPCA or its board members. Neither GPCA nor Nexant accepts duty of care or liability of any kind whatsoever to any party for damages, if any, suffered by any party as a result of decisions made, or not made, or actions taken, or not taken, based on this report. All rights reserved. No part of this document may be reproduced or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without prior written permission of Gulf Petrochemicals and Chemicals Association and Nexant.

DISCLAIMER: All rights reserved. No part of this document may be reproduced or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without prior written permission of Gulf Petrochemicals and Chemicals Association and Nexant Limited.

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GCC Plastics Processing Industry