Petrochem Arabia Dammam 2011

It was down to business from day one at Petrochem Arabia 2011; Saudi Arabia’s premium petrochemicals-focused forum and exhibition which took place in Dammam from 9-11 October.

Abdulaziz Al-Judaimi, vice president of the chemicals division at energy behemoth Saudi Aramco, seized the opportunity to begin proceedings on a high note, elaborating that his company had just signed a massive joint venture with U.S. giant Dow Chemical Company one day before to form ‘Sadara’. Sadara Chemical Company aims to register US$10 billion in revenues annually and to make Fortune’s biggest 250 companies list within five years.

The joint venture will be comprised of 26 manufacturing units, several of which constitute “mega projects” in themselves. Once complete, the complex will be one of the world’s largest integrated chemical facilities, and the largest ever built in one single phase.

Also speaking at the opening ceremony was HH Prince Saud bin Abdullah bin Thunayan—Chairman of the Royal Commission of Jubail and Yanbu (RCJY) and SABIC—who shared his vision for the future of the petrochemicals industry in Saudi Arabia.

Prince Saud announced that the Kingdom seeks to become the world’s third largest petrochemicals exporter by 2015, upon the completion of a number of mega projects currently under development. 

He also revealed PLASCHEM; an area designated for the plastics industry which is a project developed by RCJY, SABIC, Saudi Aramco and the National Industrial Cluster (IC) Programme.

Five Industrial Clusters

The IC programme, a newly established government agency, is leading the development of five fast growing, export-oriented industrial sectors in Saudi Arabia: minerals and metals, automotive, plastics and packaging, home appliances and solar energy.

IC took up residence with a massive booth at Petrochem Arabia, and the group’s president, Azzam Shalabi, captured plenty of attention by way of the contributions and announcements he proffered during panel discussions. Among the subjects broached, Shalabi revealed that Isuzu Motors of Japan will be producing 25,000 trucks annually at the Second Dammam Industrial City by the end of 2012 for export to the GCC Region and Middle East.

“In cooperation with Isuzu, Saudi Arabia is eyeing to capture the SR300 billion auto markets in the region and beyond,” he told attendees.

He also detailed how the IC automotive cluster includes the development of auto assembly and components to build a national base for the local and global market. This requires the development of a state-of-the-art automotive production and marketing concept to be participated in by local key players in the local automotive business and the global industry.

“We are therefore embarking on two national car production initiatives, namely, the Ghazal Car Project and the Asilah Car Project,” Shalabi said.

For his part, Dr. Fayez Al-Hobail, marketing director at the IC Programme, explained that the group also seek to promote investments—both foreign and local—into these five lucrative areas.

“We are pleased to say that we give the same facilities which we offer to local investors to their foreign counterparts, which includes interest free loans covering 50 to 75 per cent of setting up costs,” he tells IRJ.

Dr. Al-Hobail says that foreign investors can also benefit from attractive elements of the Saudi investment environment, including being a lucrative market given low energy costs and raw materials (largely abundant locally) and government emphasis on diversifying the economy and facilities offered, as well as the fact that the opportunity is available now.

“Don’t delay your decisions, come ask us questions and examine the opportunities yourself as they are being exploited quite quickly,” he adds.

Increasing Visibility:

Equally important to the panel discussion was Petrochem Arabia’s annual exhibition which featured a number of key local, regional and international players and service providers.

Daniel Ecker, marketing manager at Saudi Arabia’s MS Al-Suwaidi Industrial Services Company, explains to IRJ that the way he sees it, the event is strategic way to ‘increase visibility in the market’.

“This is quite important for us as we are showing off our new integrated face of the Suwaidi Group.”

However, Mowafaq Alamry, marketing manager at Mejdaf, thinks the exhibition part of the event could have benefitted from securing participation from the likes of Aramco, SABIC and Tasnee; three of the country’s heavyweights when it comes to the industry.

Nonetheless there was no shortage of major players from the petrochemicals industry in attendance, not least the Gulf Organization for Industrial Consulting (GOIC), Royal Commission for Jubail and Yanbu, Petro Rabigh, King Fahd University for Petroleum and Minerals (KFUPM), The Linde Group, ExxonMobil, ABB, Al Jomaih Holding Company and U.K. group Klaxon Signalling Solutions.

By Faisal J. Abbas in Dammam