The GCC polymer industry which is developing at a compound annual growth rate (CAGR) of 3 per cent, while supporting further downstream development, is expected to reach 34.5 million tonnes by 2022, said a recent report.

The ‘GCC Plastic Industry Indicators 2016’ report will be released at the 8th edition of GPCA PlastiCon by Gulf Petrochemicals and Chemicals Association (GPCA), the go to resource for industry data in the region.

The event will take place on April 9 and 10, at the Jumeirah at Etihad Towers, Abu Dhabi, UAE.

PlastiCon is an annual GPCA event that caters to the plastics segment of the petrochemical industry.

According to the report, future plastic capacity growth will be driven by Saudi Arabia, Kuwait and Oman.

In 2016, GCC plastics producers’ sales represented 4 per cent of the global industry sales revenue, reaching $33 billion. The industry’s capacity expanded in 2016 by as much as 5 per cent, reaching 27.1 million tonnes. In previous years, Saudi Arabia alone accounted for 2 per cent of global polymer sales, and ranked as the eighth largest plastics producer globally, it said.

Dr Abdulwahab Al Sadoun, secretary general of the GPCA, said: “Petrochemical producers are increasingly diversifying their portfolios, investing in new products and moving away from traditional commodity polymers towards specialties such as engineering plastics and elastomers.”

“This is, in turn, supporting the expansion and development of the entire downstream industry in the region,” he said.

Synthetic rubbers will witness the biggest number of products introduced in the following years, benefitting from expected growth in the transport and automotive sectors. By 2022, nearly 70 per cent of all incremental supply growth will come from commodities polymers, which represent 89 per cent of the GCC polymers capacity.

GCC engineering and specialty polymers output grew by 15 per cent in 2016, reaching 2.5 million tonnes. The industry also comprises nearly 40,000 employees with additional 118,000 in supporting sectors.

GCC polymer consumption increased by 4per cent in 2016, reaching 5 million tonnes. Saudi Arabia accounted for 67 per cent of the GCC polymer resins production in 2016 and was the largest polymers consumer in the GCC, followed by the UAE which accounted for 19 per cent.

Industrial packaging is the fastest growing end user market for polymers in the region. Consumer packaging accounts for 44 per cent, followed by the construction industry which accounted for more than a fifth. Plastic consumption in the GCC is increasing rapidly and reached 94 kg per capita in 2016.

Plastics consumption in Qatar is the fastest growing in the region, growing at 14 per cent between 2006 and 2016. This is double the growth posted by market leaders Saudi Arabia and UAE. Qatar however has the lowest consumption ratio to total polymer output. In 2016, that was just over 11 per cent, much lower than in other countries. In 2016, Oman enjoyed the highest ratio of polymer consumption to output in the region (48 per cent).  

A number of industrial parks focused on polymer conversion and multi industry are under development in Saudi Arabia, UAE and Oman, with some being built next to big resin production facilities, added the report. – TradeArabia News Service