Region set to become hub for global petrochemicals MFRG

08 Dec '07

3 min read

The Middle East is set to become the epicenter of global petrochemicals manufacturing, producing essential materials for packaging, healthcare, pipes, electronics goods, personal care, construction, and many other industrial or consumer requirements, according to a forecast by the Gulf Petrochemicals and Chemicals Association (GPCA).

In a press statement, the GPCA, which has its headquarters in Dubai, said that these products were the raw materials for industry around the globe, and much of the new output will be supplied to the booming markets of China and India.

GPCA, a non-profit organisation and a regional platform for the petrochemicals and chemicals industry in the Gulf, was created in 2006, with founding members including Saudi Basic Industries Corporation (SABIC), EQUATE Petrochemical Co. , Gulf Petrochemical Industries Co (GPIC), Petrochemical Industries Co (PIC), Qatar Petrochemical Co Ltd (QAPCO), Qatar Vinyl Co. Ltd. (QVC), National Industrialization Company (TASNEE), and Abu Dhabi Polymers Co Ltd (Borouge).

Ethylene is the building block of the petrochemicals industry and is supplied from gas in the Middle East at great cost advantage. Production capacity for ethylene in the Middle East will more than double in the next five years, rising from over 13 million metric tons in 2007 to over 29 million metric tons in 2012. This represents nearly half of global capacity growth.

"The world's largest program ever for construction of new ethylene plants is taking place in the Middle East," says Mohamed H. Al-Mady, Chairman of GPCA and CEO of SABIC.

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