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GCC, Saudi polymer producers plan to expand share in new markets

by ChemOrbis Editorial Team -
  • 13/01/2017 (15:33)
According to media reports, polymer producers in Gulf Cooperation Council (GCC) and Saudi Arabia are planning to expand their market shares in new destinations, particularly in Africa, due to the high possibility that the dynamics in the Chinese market will change in the not too far future. At the same time around 2 mil tons/year of new PP and PE capacity are expected to be added in the Middle East by 2020.

The reports indicated that currently three major regional players plan to add to their capacity. Abu Dhabi’s Borouge is expected to double its production capacity to produce 4.5 million tons/year while Saudi Arabia’s Sadara Chemical Company will start up its new plant in Jubail this year, which is expected to include 26 chemical manufacturing units with a capacity of 3 million tons/year. Oman Oil Refineries and Petroleum Industries Company (Orpic) is another big producer, which is expected to start up a new plant to produce about 1 million tons/year of PP and PE.

However, producers in Saudi Arabia and GCC are turning their faces towards new markets, particularly to Africa, and in particular Egypt and Nigeria, as they think an oversupply issue could occur in ten years. This is due to China’s plan to improve its own polymer production as part of their five-year-plan in order to decrease its dependency on imports of petrochemicals.
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