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World-class Plastics Products are increasingly ‘Made in the GCC’, says GPCA

-          GCC plastic industry capacity posts 6% capacity increase this year at 25.5million tons

-          Polymer portfolio to more than double within the next 5 years, with capacity increase of 25% by 2020, according to GPCA forecasts

Dubai, UAE; December 31, 2014:  The plastics industry in the GCC is evolving into a larger, more diverse and sustainable industry opening up channels for more consumers and new revenues, based on the latest research by the Gulf Petrochemicals and Chemicals Association (GPCA).

“The region’s plastic manufacturers have shown a consistent level of growth despite market fluctuations and increased competition,” said Dr. Abdulwahab Al- Sadoun, Secretary General, GPCA. “The region’s polymer producers and converters have demonstrated a sense of agility, flexibility and stability in the face of regional and global challenges.”

In 2014, the GCC’s plastic capacity reached 25.5 million tons, a 6% increase from the previous year, according to the GPCA. Saudi Arabia leads the region’s plastics production market, manufacturing an estimated 18.3 million tons this year, or 72% of the region’s plastic resins production capacity.  The United Arab Emirates holds the region’s second largest plastic production capacity, representing 13% of the region’s polymer capacity.

The region’s plastic industry currently includes the production of 13 products. By the end of the decade, the Gulf’s plastic manufacturers will add 16 additional products to their portfolio for applications in the aviation, transport and food packaging sectors. Similarly, the GPCA forecasts that plastic capacity will reach 33.8 million tons by 2020, an estimated 25% increase from current capacity.

“Over the next five years, the Gulf’s plastic producers have the potential to create a distinct identity for themselves, where their products are seen as cost- effective, reliable and high value,” continued Dr. Al- Sadoun. “By the end of the decade, we foresee a growing influence of this sector globally, when a ‘Made in the GCC’ label will be the norm, rather than an exception.”

The evolving plastics industry will be a key focus at the 6th edition of PlastiCon ., the annual international conference for plastics conversion. From January 11- 12, 2015, the conference will feature top executives from key plastic manufacturers in the region including Abdulaziz Alhajri, CEO of Borouge; Ziad S. Al-Labban, CEO, Sadara Chemical Company; Abdullah Bin Saleh Al Suwailem, CEO, PetroRabigh Company; and Mosaed Al-Ohali, Executive Vice-President – Polymers, Sabic among others. PlastiCon 2015 will also dedicate a special session to the effect of crude prices sharp decline on the polymer market.

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