‘Kingdom heading to become international hub for petrochemicals’

Updated 23 October 2013

‘Kingdom heading to become international hub for petrochemicals’

Tasnee Chairman Mubarak bin Abdullah Al-Khafrah has said that the petrochemicals companies in Saudi Arabia have their milestone position in world markets. This is because the Kingdom has many privileges that increasingly qualify it to be a global hub for petrochemicals and downstream products, he said, adding that petrochemicals industry is one of the largest nonoil industries in Saudi Arabia.
Saudi Arabia is classified as 11th country around the world in petrochemicals supply. Availability of feedstock, closure to exporting markets in Europe and Asia as well as abundance of energy resources as main factors, contribute to remarkable growth in petrochemicals and downstream industries.
Al-Khafrah, who was speaking on the occasion of the K-SHOW held in Dusseldorf, Germany, said that the huge investments launched by Saudi Arabia to maintain infrastructure have enhanced the Kingdom to be one of the largest producing countries in the Middle East of polyethylene (PE) and polypropylene (PP), which are deemed as key elements used in production of plastic materials.
Al-Khafrah added: “Some global markets are significantly growing and have increased their demand for plastic products causing a higher demand for plastic products, therefore, there is a major progress in all aspects of plastics manufacturing of machineries, equipment, feedstock and semi-finished products, spare parts and relevant services to plastics and petrochemicals manufacturing.”
He said that Tasnee’s first time participation at the K-SHOW was meant to present Tasnee products to about 3,000 exhibiting companies during the period from Oct. 16 to 23, in the presence of a large number of businessmen. Tasnee was one of the largest among 3,000 exhibitors at the K-SHOW, he said.

New emissions blow for VW as German court backs damages claims

Updated 26 May 2020

New emissions blow for VW as German court backs damages claims

  • Scandal has already cost firm more than €30 billion; ruling serves as template for about 60,000 cases

KARLSRUHE, Germany: Volkswagen must pay compensation to owners of vehicles with rigged diesel engines in Germany, a court ruled on Monday, dealing a fresh blow to the automaker almost 5 years after its emissions scandal erupted.

The ruling by Germany’s highest court for civil disputes, which will allow owners to return vehicles for a partial refund of the purchase price, serves as a template for about 60,000 lawsuits that are still pending with lower German courts.

Volkswagen admitted in September 2015 to cheating in emissions tests on diesel engines, a scandal which has already cost it more than €30 billion ($33 billion) in regulatory fines and vehicle refits, mostly in the US.

US authorities banned the affected cars after the cheat software was discovered, triggering claims for compensation.

But in Europe vehicles remained on the roads, leading Volkswagen to argue compensation claims there were without merit. European authorities instead forced the company to update its engine control software and fined it for fraud and administrative lapses.

Volkswagen said on Monday it would work urgently with motorists on an agreement that would see them hold on to the vehicles for a one-off compensation payment.

It did not give an estimate of how much the ruling by the German federal court, the Bundesgerichtshof (BGH), might cost it.

Volkswagen shares were 0.5 percent lower. The BGH’s presiding judge had signaled earlier this month he saw grounds for compensation.

Costs mount

“The verdict by the BGH draws a final line. It creates clarity on the BGH’s views on the underlying questions in the diesel proceedings for most of the 60,000 cases still pending,” Volkswagen said.

A lower court in the city of Koblenz had previously ruled the owner of a VW Sharan minivan had suffered pre-meditated damage, entitling him to reimbursement minus a discount for the mileage the motorist had already
benefited from.

The court at the time said he should be awarded €25,600 for the used-car purchase he made for €31,500 in 2014.

“We have in principle confirmed the verdict from the Koblenz upper regional court,” said BGH presiding federal judge Stephan Seiters.

Volkswagen had petitioned for the ruling to be quashed altogether by the higher court, while the plaintiff had appealed to have the deduction removed.

A Volkswagen spokesman said that outside Germany, more than 100,000 claims for damages were still pending, of which 90,000 cases were in Britain.

The carmaker also said it had paid out a total of €750 million to more than 200,000 separate claimants in Germany who had opted against individual claims and instead joined a class action lawsuit brought by a German consumer group.

The carmaker said last month it would set aside a total of 830 million for that deal.

In a separate court, Volkswagen agreed last week to pay €9 million to end proceedings against its chairman and chief executive, who were accused of withholding market-moving information before the emissions scandal came to light.