NPE '09: SABIC to seek opportunities amid downturn

22 June 2009 21:58  [Source: ICIS news]

By Ivan Lerner

CHICAGO (ICIS news)--Contrasting views about the future of the plastics industry in the wake of the current economic downturn will not stop SABIC’s plans for growth, the company’s chief executive said on Monday.

“Our growth strategy is to look for opportunities. This year because of the stressful economic situation, there will be opportunities for strategic investment and acquisition,” SABIC vice chairman and CEO Mohamed al-Mady said during an interview with ICIS.

Al-Mady spoke on the sidelines of the International Plastics Showcase, also known as NPE, in Chicago.

But, he added: “Today’s environment calls for prudence.”

Al-Mady would not say when he projects a recovery for the polymers industry but he added he was “optimistic for engineering plastics”.

While more capacity will be rationalised throughout the industry, “we have seen some signs of improvement,” such as an increased order rate, said Al-Mady.

Additionally, he said he was confident of plastics' continuing penetration into the wood, glass and metals markets, especially in the automotive sector.

“The vehicle’s exterior will be using more and more plastics,” he said.

It was very difficult to project the future from today’s market, Al-Mady said.

“I have met with CEOs, bankers and government officials, and [it is] a mixed bag of predictions: There are the optimists,” who project recovery this year. Then there are those who are “not pessimistic,” but only project a “medium recovery” by mid-2010, he said.

Finally, al-Mady noted, there are the pessimists, who use as their model the US depression of the 1930s, and predict as long a recovery as back then.

The NPE in Chicago was expected to draw 75,000 participants and runs through Friday.

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By: Ivan Lerner
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