13 December 2007 13:58 [Source: ICIS news]
By Jeanne Lim
DUBAI (ICIS news)--Saudi Arabia's Nama Chemicals is a downstream producer who is seeking its fortunes upstream, the company's president said on Thursday.
It is natural for the Saudi-listed epoxy resins producer to move upstream as this gives it more control over feedstock costs, said Abdulmohsen Al-Ogaili, speaking to ICIS news on the sidelines of the 2nd Gulf Petrochemical and Chemical Association (GPCA) Forum which ends on 13 December.
“Can a downstream company without economical feedstock survive?" he posed. "The longer [you move] your value chain upstream, the better the economics. There's no reason why a company downstream shouldn't move upstream.”
To this end, the company is partnering ?xml:namespace>
The government is expected to present bidding companies with request for proposals (RFP) by the first quarter next year.
Nama Chemicals also plans to be the No 1 supplier to the epoxy market in the
It is in the midst of doubling its epoxy resin capacity to 120,000 tonnes/year.
The expansion plant located in Jubail is expected to start up commercially in the first quarter of 2011.
“We're a small company but we're agile. We understand the logic [in the region] a little better. We also deliver faster because we're near. We have certain advantages that we're trying to maximise,” said Al-Ogaili.
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