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SAUDI ARABIAN – DOWNSTREAM
COLLABORATION OPPORTUNITIES FOR
JAPANESE COMPANIES
Takeshi Maruyama
SABIC Japan
2ND FEBRUARY 2012
No. 1
CONTENTS
1 – SABIC TODAY 2 – DOWNSTREAM COLLABORATION: Opportunities for Japanese Companies in Saudi Arabia
No. 3
HIGHLIGHTS
•Established in 1976, SABIC is one of the top
petrochemical companies in the world
•Total assets over $84.5 billion and annual
revenue exceeding $40.5 billion
•33,000 employees and operations in more
than 40 countries
•More than 60 world-class manufacturing and
compounding plants in locations across the
Middle East, Asia, Europe and the Americas
•Vast array of products including chemicals,
polymers, specialty plastics and chemicals,
fertilizers and metals
No. 4
GLOBAL RANKINGS
Mono-ethylene glycol
MTBE
Granular urea
Polycarbonate
Polyphenylene
Polyether imide
Methanol
Polyethylene
Polypropylene
Polybutylene terephtalate
Engineering plastics and its
compounding
No1
No2
No3
No. 5
Production growth (million tons) SABIC Revenue Growth (billion US$)
613
22
28
47
5659
66
1985 1990 1995 2000 2005 2008 2009 2010
SABIC Growth & Results
Organic and M&A
Growth
SIP
Europe
UK
No. 6
GLOBAL REACH
SABIC operating region
SABIC Global Headquarters (1)
Application centers (2)
Distribution, storage facilities and logistic hubs (46)
International subsidiaries and Sales offices (87)
Manufacturing and compounding companies (60)
Research and innovation centers (SABIC CRI) (1)
Technology centers (15) 60 Manufacturing & Compounding Sites Cos
87 International Subsidiaries & Sales offices
18 dedicated Technology & Innovation Centers
No. 7
SABIC Japan Overview
Osaka Sales Office
Nagoya Sales Office
Tokyo Headquarters
Moka Plant
& Tech
Center
2 Sales Office 1 Manufacturing Site 1 Technology Center
• 40+ year operation in Japan
• Long standing relationship with customers and partners
• 3 office locations: Headquarters in Tokyo, sales offices in Osaka and Nagoya
• Technology Center and Plant in Moka (Tochigi Prefecture)
• 300 employees
No. 10
SAUDI NATIONAL INDUSTRY STRATEGY AN OPPORTUNITY FOR COLLECTIVE COOPERATION
• The national strategy goal of increasing the contribution of industrial
sector to GDP to 20% by 2020 from the current 11% serves SABIC 2020
strategy growth ambition & leadership
• A KSA strategic opportunity for SABIC to play an active role in the
implementation of the national strategy & to deliver on SABIC 2020
strategy ambitions
• The Saudi government is promoting and motivating international
interest to participate in the implementation of KSA downstream
industry strategy leveraging KSA’s market and competitive advantages
No. 11
PRIMARY CHEMICALS GROWTH
Saudi production capacity addition in the past has focused
strongly on primary chemicals
No. 12
THE NEW RANGE OF PRODUCTS
Current and future projects will add a range of performance chemicals and materials
suitable for conversion or processing to components in the downstream value chains.
• Products currently under construction or in planning in KSA
- Cumene, Phenol, Bisphenol A
- Polycarbonate
- Ethoxylates & Ethanolamines
- Saudi Elastomer Project – synthetic rubber, thermoplastic polymers and carbon black
- ACN, NaCN, MMA, PMMA, POM
- Carbon Fiber
- N-Butanol
-Natural Detergent Alcohols
• Product Pipeline
- Polyurethanes
- Acrylic Acid
- Oxo Alcohols
- Acrylates
• These products are targeted at a number of key sectors including hygiene, surfactants,
construction, paints and coatings and the energy sector
• They offer investment opportunities in Saudi Arabia for Japanese chemicals and
materials companies to process these products further into materials, ingredients and
components for a variety of end-use applications
No. 13
KSA CHEMICAL INDUSTRY EXPANSION – POISED FOR DOWNSTREAM GROWTH
Jubail
Rabigh
Riyadh
Sadara
Performance
Products
Amines
Glycol Ethers
Propylene Glycols
Polyether Polyols
Isocyanates
Performance
Plastics
Solution PE
LDPE
Elastomers
Value Park
Water treatment and other
downstream chemicals and
materials
Petro
Rabigh
Polymers
LLDPE
HDPE
PP Homopolymer
PP Copolymer
Monomers Mono ethylene glycol
Propylene Oxide
Sipchem $2.6bn investment
Maleic Anhydride
Butanediol
Vinyl Acetate Monomer
Ethylene Vinyl Acetate
Yanbu
Tasnee $1.5bn investment
Acrylic Acid
Titanium Dioxide
Chlorine
No. 14
PRIORITY DOWNSTREAM CLUSTERS ARE STRONGLY LINKED TO KSA’s CHEMICAL EXPANSION
Automotive
Metals
Processing
Plastic
Packaging
Construction
Consumer
Appliances
Cluster Conversion Process Chemicals and Materials
pipe extrusion, roto moulding, film extrusion, re-
moulding, re-grinding, braiding, transfer moulding,
spiral winding, flexible and rigid foaming
roto moulding, film extrusion, non-woven, blow moulding,
injection moulding compounding, calendering,
component assemble, re-moulding, re-grinding, braiding,
flexible and rigid foaming, systems house
Casting, rolling, milling, turning, extruding,
machining, assembly
film extrusion, co-extrusion, re-moulding, non
woven, transfer moulding, cast and blown film,
injection moulding,
roto moulding, film extrusion, non-woven, blow moulding,
injection moulding compounding, calendering,
component assemble, re-moulding, re-grinding, braiding,
flexible and rigid foaming,
HDPE, LDPE, LLDPE, PVC, PP, PC, EPDM, PU
HDPE, LDPE, LLDPE, PVC, PP, PC, PS, EPDM,
POM, PMMA, ABS, SBR, SSBR, PBR, Halobutyl
rubber, carbon black, carbon fibre, PU
Steel, aluminium
HDPE, LDPE, LLDPE, PVC, PP, PC, EPDM, PS,
PET, ABS, EPDM, PU
HDPE, LDPE, LLDPE, PVC, PP, PC, PS, EPDM,
POM, PMMA, ABS, SBR, SSBR, PBR, Halobutyl
rubber, carbon black, PU
No. 15
GENERIC DEVELOPMENT OF THE DOWNSTREAM VALUE CHAIN
SAUDI ARABIA’s chemicals and materials sectors are ready to supply
the automotive value chain. Many of the plastics processors and
converters already exist in the country.
Raw
Materials
Inter-
mediates
Perform-
ance
products
Converters
Molders
Extruders
Semi-
finished
components
Modules/
sub-
assemblies OEMs
KSA Chemicals Target Anchors
Attracting the anchor investors will facilitate downstream
development in conversion, semi-finished components and
modules/sub-assemblies
No. 16
Japanese COMPANIES COULD INVEST IN THE AUTOMOTIVE VALUE CHAIN AT TIER 1 OR OEM LEVEL
Locally
produced
components
Raw Material
Suppliers
Resin
Manufacturer
Compounder/
Coloring
Converters
Molders
Extruders
Raw Material
Suppliers
Rubber/
Elastomer
Manufacturer
Compounder/
Coloring
Tire , foam,
moldings
Manufacturers
Mines Metal
Manufacturer
Milling,
forming,
casting,
forging
Part/
component /
body panel
Manufacturers
Fully imported
components and
assemblies
Imported
components
Sub Assembly –
differentials,
gearboxes,
engines,
electrical motors
Raw Material
Suppliers
Resin
Manufacturer
Compounding,
blending,
formulating
Coloring
Coatings,
Adhesives,
Sealants,
Elastomer
components
Combined
with Imported
components
Batteries,
wiring loops,
axles,
suspensions
systems
2nd – Tier
Suppliers 1st – Tier
Suppliers
ETPs
Elastomers
Metals
Chemicals
Target Anchors
OEM assembly
line:
e.g. GM, Ford,
US Truck
companies -
Oshkosh, Mack,
Kenworth etc.
Target sectors:
•Private
passenger cars
•Taxis
•Commercial
vehicles
•Ambulances
•Military vehicles
•Fleet owners
KSA Chemicals
Through attracting the anchor
investors, downstream
development will be stimulated
No. 17
TOGETHER, JAPAN AND SAUDI COMPANIES CAN WIN IN DOWNSTREAM
What Saudi Arabia Brings
• Financial resources
• Political stability
• Enabling policies
• Selected competitive advantages
• Highly educated workforce
• Proven track record in economic
development
• Range of competitive materials and
polymers
• Leading oil and chemical industry
cluster
• Knowledge of how to build clusters
from the ground up
• Valuable local project development
experience
What Japanese companies bring
• Technology in the key value chains of
interest to Saudi Arabia
• Established OEMs with global reach
• Supply chain management
• Management skills and capacity
• Supply of services and equipments
• Sophisticated product know-how
• Industrialization knowledge
• Captive markets
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