RIYADH, 1 April 2008 — The demand for petrochemicals in Asia is expected to exceed the combined demand of the United States and Europe within two years, says Mohamed Al-Mady, the CEO of Saudi Basic Industries Corp. (SABIC).
"Petrochemical producers in the Middle East, where cheap access to energy encouraged large investment in the industry, will benefit from the expected demand surge," he said.
"Growth in global demand was a catalyst for growth in these industries, especially in China and Pacific Asia ... where demand is the expected to exceed within two years its level in the United States and Europe put together," he told the SABIC Plastics Forum.
Output from the Middle East will account for 17 percent of global output by the end of 2010 against 10 percent at the beginning of 2000, said Al-Mady, whose firm is the world's largest petrochemical company.
"Growth in global demand was as fast as growth in production capacities," he said.
Demand in China is growing at an annual 10 percent for polyolefins, at 9 percent for high-density polyethylene, 12 percent for low-density polyethylene and 10 percent for polypropylene, Al-Mady said.
SABIC expects its polyethylene exports to reach 10 million tons by the end of 2010, which is 120 percent above its level in 2004, Al-Mady added. Asia is expected to take 80 percent of the polyethylene exports, Al-Mady said without giving comparative figures.
SABIC, the world's fourth-largest producer of polyolefins, hoped to become the second largest in 2015, said Al-Mady. SABIC is the third-largest producer of polyethylene and fourth-largest polypropylene producer.
Prince Saud ibn Abdullah ibn Thenayan, chairman of SABIC said the number of plastic industries in the Kingdom rose from 100 in 1986 to more than 800 in 2008. "This is a big progress," he added. He said SABIC would encourage plastic industries to improve their quality.
- With input from agencies
