Al Rajhi Holding to double PE, PP conversion capacity by 2014

03 April 2012 12:25  [Source: ICIS news]

DUBAI (ICIS)--Al Rajhi Holding will double its combined conversion capacity of polyethylene (PE) and polypropylene (PP) resins in Saudi Arabia to above 300,000 tonnes/year by 2014, a senior executive of the company said on Tuesday.

The expansion will be in sectors such as packaging, non-woven, products for the carpet industry and technical products, Manfred Klepacz, CEO of Al Rajhi Holding’s industrial sector said.

He was speaking prior to the commencement of 3rd Gulf Petrochemicals and Chemicals Association (GPCA) Plastics Summit, which will take place on 3-5 April in Dubai.

“More jobs will be created to satisfy the young demographics [in Saudi Arabia],” Klepacz said.

However, Al Rajhi could face issues with its polyolefin resin producers, the company’s chief procurement officer Ralf Baudzus said.

“Although our plants are just located in the vicinity of the resins producers, we do not receive our resins on time. So, even if we have larger capacity to convert, we may not receive enough resins on time,” Baudzus said.

“Also, it will take weeks and months for the resin suppliers to respond to us when we have issues with the quality of the resins,” he added.

He said it would be essential to have the support of resin producers, in order for the company to meet its nameplate conversion output.

Al Rajhi has five business units, which includes the industrial sector with a polyolefins conversion business.

By: Ong Sheau Ling
+65 6780 4359

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