InterviewTASNEE urges convertors to set up business in GCC region

06 April 2011 15:40  [Source: ICIS news]

DUBAI (ICIS)--National Industrialisation Co (TASNEE) is urging converters to see the economic value of establishing business in the Gulf Cooperation Council (GCC) region, highlighting numerous advantages such as cost-competitive raw materials, its vice chairman and CEO Moayyed al-Qurtas said on Wednesday.

“These converters think that over here there is not that much of demand, which is untrue,” said Al-Qurtas on the sidelines of the Gulf Petrochemicals and Chemicals Association (GPCA) plastics summit.

He added that demand in the region was substantial enough to justify the setting up of a considerably large conversion industry, in order to supply locally and export on a selective basis.

Saudi Arabia, for instance, has the largest conversion sector in the region, and is growing at a significant rate, said Al-Qurtas.

“There is a snowballing effect. Once the resins industry is established, such as polyethylene [PE], polypropylene [PP], polyvinyl chloride [PVC] and polyethylene terephthalate [PET], we will see a substantial growth in the downstream to the extent that some polymers producers today are not capable to export,” he said.

“For example, high density PE [HDPE] pipe grade is expected to be a booming business because water management is very important in our region” said Al-Qurtas.

He added that the presence of easily available competitively-priced raw materials would support the conversion sector.

“My message to the converters is that they should not be late to enter our region because the opportunities are here. So many converters here are even exporting as far as China,” he said.

“The window is still there and quite open,” he added.

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By: Ong Sheau Ling
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