Mideast producers should extend credit - NPC

12 November 2008 08:43  [Source: ICIS news]

BANGKOK (ICIS news)--Middle East polymer producers should extend long-term credit to converters to boost demand during the global financial downturn, a senior industry official said on Wednesday.

"Middle East producers should consider extending credit to their customers for up to six months, from the current 90 days, to help the processing industry weather the current crisis," said Mohammad Hassan Peyvandi, director of planning and development with National Petrochemical Co (NPC).

Peyvandi was addressing delegates at the ICIS World Polymers Conference.

Demand for polymers has weakened in the Middle East in recent months due to a severe squeeze on converters' margins.

Polymer producers starting up projects during the financial downturn should also be extended similar deferred payment terms by their financiers, he said.

"There should be international cooperation between producers and financial banks to consider rational delays in payments to create the opportunity for new producers to weather the crisis," he said.

The two-day conference ends on Thursday.

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By: Prema Viswanathan
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