Earlier, while delivering his opening remarks and setting the tone for the day, Abdulwahab Al-Sadoun, the Secretary-General of the Gulf Petrochemical and Chemical Association (GPCA), revealed that over 80 percent of leading petrochemical and chemical companies in the Gulf view innovation as an important and integral part of their strategy, yet there’s a long way to go.

“The petrochemical industry in the region has been growing at a cumulative average growth rate of 12.5 percent over the last quarter of a century, since its inception almost in the mid 80s. Yet this is the time for innovation,” he underlined.

As per a survey conducted by the GPCA conducted to ascertain the level of innovation in the region,  innovation remains a top issue for 25 percent of the companies while for most this is among the top three considerations. The emphasis in the region however, seemed on product innovation.

Human resource remains a major obstacle in generating a culture of innovation in the region, the study highlighted.

David Weidman, president and CEO of Celanese, while delivering his talk on innovative strategies for competing in a new chemical order underlined that “innovation is a major requirement of growth. Companies with greater than 50 percent revenues from products created in last five years tend to grow their revenues by 10 percent, while companies with less that 10 percent of new products in their portfolio over the last five years tend to stagnate,” while stressing the importance of innovation.

Chu, while presenting the trends in the financial sector, emphasized that over the next five years, financial cost would go up and that the chemical industry needs to be prepared for it.

The emergence of China on the global scene apparently provides some answers to the emerging capital problem. Victor Chu hence, indicated that despite the scarcity of readily available finance, new pockets of financing are coming up. He particularly referred to the off shore capital market emerging in Hong Kong, which could be increasingly ready to serve the region.

He also referred to the Shanghai Stock Exchange, where the regional companies can look forward to enlist themselves and generate money.

He further cautioned that in tandem with the emerging capital scarcity, the world was also reverting to the basics, looking for sustainable growth only and the chemical industry needs to be prepared to face it.

And then it was Hong Ki-joon, president and CEO of Hanwha Chemical Corporation too stressed greater integration and cooperation between the regional industry and South East Asia. He singled out the solar industry and the possibility of greater cooperation, highlighting who could have more resource than this region, as far as solar energy is concerned. Detailing his road map, Hong said, Middle East has capital and natural resources, while South East Asia has human resources. And these two elements of growth could be better connected in order to achieve optimal growth.

Already Hanwha Chemical Corporation has asset base in the region.

Dimitry Konov, President Sibur LLC, detailed the emerging industry in Russia. Despite being the largest crude producer and a gas powerhouse, Konov referred to the obstacles industry in Russia faced till yet. However, he emphasized the petrochemical industry in Russia is beginning to take shape, reminding it could be an industry powerhouse in the years to come. Russia is already in the process of building six clusters of world-class ethylene capacities in the country, he said.

Continuing on the process of innovation being vital to the growth of industry in the region, Prof. Rainer Diercks, president Petrochemicals Division, BASF SE pointed out three major emerging trends. That the world is increasingly being dominated by discontinuities — such as the changing pattern of global GDP, the rising oil prices and the changing currency exchange rates. He underlined that a new world order is emerging where Asia would dominate, volatility will exist and new production centers would crop up on the map.

He added that 60 percent of the global population would live in big cities by 2030, putting additional pressure on infrastructure, there would be at least 40 percent more need of primary energy resources, proportion of elderly people in the population would go up and 1.4 billion cars would be on streets by 2020.

The chemical energy is needed to stand up to the challenges and find out answers to all these issues, it can only come through innovation, Diercks emphasized summing up the theme of the day.