Chemical players in the Middle East and the Persian Gulf region have been urged to accelerate transformation and form "win-win" partnerships to future proof their operations and leverage capital and risk sharing.
Speaking during the 13th annual Gulf Petrochemical and Chemical Association (GPCA) event Nov. 27, Yousef A. Al-Benyan, vice chairman and CEO of materials company Saudi Basic Industries Corp. (Sabic) and chairman of the GPCA, called on the local industry to bolster the joint efforts in “creating partnerships through consolidation [and] portfolio exchange, which will create scale and value for all the players.”
Without such structural measures, the Saudi executive warned, “we will not be able to compete with larger global players — both existing and new entrants.”
The comments came amid a bid by Saudi oil giant Saudi Aramco to acquire a large stake in Sabic.
In his remarks, Al-Benyan stated that the industry was “bound for transformation” considering the changes in the global economy and structural changes faced by end-use markets and suppliers.
“Changes across value chain nodes are forcing global and [Persian Gulf] chemical industry players to evolve by focusing on portfolio, competitiveness, and growth measures. Industry players are taking action that are creating significant value for shareholders in global capital markets,” he added.