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.
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