UpdateGPCA '11: New capacity to boost 2012 profits - Al-Mady

14 December 2011 11:46  [Source: ICIS news]

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DUBAI (ICIS)--Next year will be another profitable one for the petrochemical industry with increased rates from new capacity helping to offset economic stresses, SABIC's vice chairman and chief executive Mohamed Al-Mady said on Wednesday.  

He predicted a possible slowdown in Europe in 2012 as a result of the financial crisis in the region, but added that the US is likely to avoid a double-dip recession.

“2012 is expected to be another good year for the industry despite some concerns that Europe is slipping back into recession, al-Mady said at the sixth annual GPCA (Gulf Petrochemicals & Chemicals Association) Forum.  

"Financial results should receive an additional boost from industry operating rates in 2012 as new capacity comes on stream," he said.

Al-Mady said that the global petrochemical industry, as well as members of the GPCA, should do its best to advocate against anti-trade or protectionist measures.

“Most economists have said that free international trade provided enormous benefits to the global economy, yet - and at this time of economic and fiscal stress accompanied by high level of unemployment in many countries -  the benefit of free trade is being called into question,” he said.

“The fear is that the slowdown in global economic growth… [could] provide an environment that raises protectionist activities,” he added.

Al-Mady, who is also chairman of GPCA, said 2011 had been a profitable year for the petrochemical industry despite some softness in the fourth quarter.

Earlier, Al-Mady called for the industry to help control human-induced climate change by developing more environmentally friendly chemicals.

The industry must produce products that enable the entire production chain to be sustainable, he said.

William Lemos contributed to this story

By: Nurluqman Suratman

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