The GCC’s growing plastics industry – which is tipped to account for up to 20 per cent of the world’s ethylene capacity by 2010 – will take centre stage at the first ever Middle East Plastics conference in the Kingdom of Bahrain, November 29 – 30.
Keynote industry leaders already confirmed for the event are: His Excellency Dr Hassan A Fakhro, Bahrain’s Minister of Industry and Commerce and Harri Bucht, CEO of Borouge (the Abu Dhabi Polymers Company Ltd).
The niche sector, which has grown from zero output in 1975, will benefit from a slowdown in production in the West, according to conference chairman Edmund O’Sullivan.
He said: “As plastics capacity is shut down in the West, most of the new production will come from the Gulf.
“Gas is abundant and competitively priced; we have the foundations for growth of the sector, since Saudi Arabian Basic Industries Corporation (SABIC) was founded 30 years ago; and there is plenty of long-term finance seeking investment opportunities in the region.”
The petrochemicals industry in the region has changed dramatically over the last 10 years. In 2004, liquid chemical exports from the GCC and Iran were less than 17 million tonnes. In 2008, experts predict a rise to almost 50 million tonnes.
By 2010, the GCC, which produced nothing in 1975, will account for 20 per cent of world ethylene capacity, while the USA’s share will fall to 24 per cent.
O’Sullivan continued: “SABIC, the most valuable manufacturing company in the Middle East, is already the world’s third largest producer of polyethylene and the fourth largest manufacturer of polymers of all kinds. It is investing more than $8,000 million to raise total output of all products to 60 million tonnes.”
Saudi Arabia, which is represented on the conference programme by Zamil Plastics Industries among others, is just one regional example of the growth in the Middle East plastics sector.
Iran aims to double plastics production capacity well before 2010. Qatar’s plans call for ethylene production to rise to about 6 million tonnes in 2011, with up to four new crackers coming on stream.
Kuwait is implementing a massive expansion programme, Borouge is more than doubling capacity and a fully integrated petrochemicals project has been unveiled in Bahrain. Oman has five new petrochemicals projects in development and plans to invest in Iran.
O’Sullivan added: “Petrochemicals is now the third key source of growth and employment for Gulf economies after oil and gas, and international companies cannot afford to ignore the Middle East.”
Middle East Plastics, one of MEED’s niche sector conferences, will be held at the Diplomat Radisson SAS Hotel, Manama, Kingdom of Bahrain, on November 29 - 30. Already confirmed as sponsors are: British Offset (BOO); Ciba Specialty Chemicals; Innovene and European Plastics News.
A full agenda and additional information can be found on www.meed.com/plastics.
