14 December 2011 09:58 [Source: ICIS news]
DUBAI (ICIS)--Middle East petrochemical producers must adapt to the changing reality in order to remain competitive, LyondellBasell CEO Jim Gallogly said on Wednesday.
Regional producers should improve cooperation in areas such as pipeline infrastructure, shared storage, shipping and logistics optimisation and support services to cope with the changes in the industry, Gallogly said during a presentation at the sixth annual GPCA (Gulf Petrochemicals & Chemicals Association) Forum.
“We should also bring world-class research to [the Gulf Cooperation Council region],” he said.
He added that downstream integration with converters is an important step towards maintaining competitiveness.
“We should also bring niche players from around the world and the smart people around the world to this region,” Gallogly said.
Such moves are important to manage the changing landscape of the petrochemical market, taking into account factors such as the reduced China import chances because of increased local production and competition arising from new feedstock regions, he said.
Middle East producers also have to adjust their product mix because of the regional feedstock slate, Gallogly said.
“The Middle East will continue to be the powerhouse of the world,” he added.
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