05 April 2011 16:43 [Source: ICIS news]
(recasts, adding 'Al' to Al-Labban throughout)
DUBAI (ICIS)--Saudi Arabia’s Rabigh Refining and Petrochemical (Petro Rabigh) plans to build another plastics-converting industrial park before the Phase II expansion of its existing park comes on stream in 2015, CEO and President Ziad al-Labban said on Tuesday.
Speaking at the second Gulf Petrochemicals and Chemicals Association Plastics Summit, Al-Labban said the industrial park would be similar to Petro Rabigh’s existing one.
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The facility also includes a 600,000 tonne/year linear low-density polyethylene (LLDPE) plant, a 300,000 tonne/year high-density polyethylene (HDPE) unit and a 700,000 tonne/year polypropylene (PP) plant.
At the park, converters obtain feedstock to produce automotive parts, plastic products, medical consumables and insulation materials.
“About 70% of the land is occupied with both international and local convertors,” Al-Labban said, adding that there are 16 companies at the park.
“These converters have the advantage of close-to-negligible land cost. They do not need to carry inventories, nor do they [need] to build warehouses due to the close feedstock proximity,” he said, adding that many jobs would be created, adding value to the economy.
“This is a captive market for us,” he said. “We view this as a win-win situation.”
The three-day plastics summit ends on 6 April.
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