In March Chemicals Northwest welcomed speakers from KPMG and UKTI to give their views on “The Middle East – Challenges and Opportunities for the UK Chemical Industry”.
Delegate curiosity mainly focused on opportunities in the Kingdom of Saudi Arabia (KSA). KPMG commented that, whilst overall Saudi competitiveness was good, the government may be over-optimistic in its timescale projections to diversify the economy away from oil and gas and employ an expanding population.
From a chemical perspective, the need to create employment for the local population, a process called “Saudi-isation”, will see KSA diversify into higher added-value speciality chemicals and other downstream industries. One of the many infrastructure investments is US$20bn for the Sadara petrochemical complex in Jubail Industrial City.
Julian Birchett, from UKTI Northwest’s Strategic Alliance Service discussed how companies could tap into relevant business opportunities and Steve Cowles from UK Export Finance then identified what export finance support facilities were in place.
A follow-on visit to Saudi Arabia in April by Julian has resulted in a UKTI Northwest initiative which chemicals companies may find useful.
“Saudi Aramco has been given the lead responsibility by the Saudi Government for industrial development”, states Julian. “The agenda is firmly focused on privatisation, diversification, import substitution and Saudi-isation.
The first phase of the new SATORP ethylene/naptha refinery in Jubail will come on stream in 2015. Sadara, a Saudi Aramco/Dow Chemical Company joint venture, will come on stream at the same time. SATORP feedstocks will supply Sadara, which in turn will supply PlasChem Park, the adjoining site under construction in Jubail. PlasChem Park is scheduled for completion in 2015 and will have two sites, one to process intermediates, the other to formulate/convert chemicals to serve domestic and export markets. Aramco are already providing practical assistance and financial support to encourage Saudi small and medium-sized companies to participate in the project”.
UK chemical companies looking to grow their overseas presence and who serve a broad industrial spectrum including construction, automotive, personal care and, of course, energy products may wish to discuss now how UKTI North West’s Saudi Arabia initiative could add value to their growth strategy.
A UKTI organised delegation to Eastern Province (Al Khobar) will take place from 15 – 21 November 2013 focusing on energy, speciality chemicals, advanced engineering and companies supplying associated services. UKTI North West are looking to start discussions with interested companies now to ascertain company objectives, impart information about the business and finance scene and help develop partnerships with Saudi companies ready for Sadara/PlasChem Park when it comes on stream. A plan of action will also be developed to maximise your time in the region during the visit and support ongoing sustainable business relationships.
For further information on UKTI Northwest’s Sadara/PlasChem Park initiative and the outward mission in November please contact Tricia Francis on 07966 560644 or tricia.francis@uktinorthwest.co.uk
