Positive sentiments on region-wide growth

ACCORDING to the report by the Gulf Petrochemicals and Chemicals Association (GPCA), producers of plastic resin in the Gulf held an annual production capacity of 24 million tonnes in 2012, of which only 4.5 million tonnes are converted into finished, semi-finished industrial and consumer plastic products in the region. Resin production is expected to grow to 30 million tonnes by 2015, in which growth is not limited to capacity but also number of specialty products which are expected to double by 2017.

Plastics are a downstream product of petrochemicals so naturally the Middle East and GCC, in particular, has developed a strong export industry in primary plastics. The 2nd Plastivision Arabia and 2nd Arabia Mold event with the inaugural Print Pack Arabia event confirmed the positive sentiments over the region’s capacity to thrive in the plastics and petrochemical industry. The three trade fairs - conducted in Sharjah, United Arab Emirates from 7-10 April2014 - welcomed high visitor turnaround and participation.

“The first three days were fantastic. Most of the exhibitors are optimistic about the MENA and GCC growth story and are planning to expand their presence in the region,”said Mr. Saif Mohammed Al Midfa, CEO, Expo Centre Sharjah. During the four day event, the three shows collectively featured over 250 exhibitors from more than 20 countries, occupying 14,000 sqm exhibition space vis-à-vis previous edition’s 10,000 sqm. Visitor figures grew from 7,000 from 66 countries to 7,277 visitors from 77 countries. Plastivision Arabia also featured a Business Opportunity Pavilion, Consultation Counters, and a Recruitment Pavilion.

The annual GPCA plastic conversion conference was organised in conjunction with the Plastivision Arabia. Dr. Abdulwahab Al-Sadoun, Secretary-General, Gulf Petrochemicals and Chemicals Association (GPCA)  said that since PlastiCon’s first edition in 2009,  attendance has grown over 15 percent on an annual basis. “I am very pleased that this year, we’ve managed to attract a growing number of plastic converters from 59 to 95 attending – 60% more than in 2013 – highlighting the emergence of GPCA PlastiCon as the premier event for all players in the plastics value chain.” He added that overall the outcome was positive, as GPCA’s partnership with the Expo Center Sharjah and the All India Plastics Manufacturers’ Association (AIPMA), the organisers of Plastivision Arabia, brought all major players with an interest in plastics in one location. This really advanced the networking and business opportunities of GPCA PlastiCon 2014.

Strong potential of petrochemical and chemical industries

Dr. Sadoun said that in this day and age, innovation, investment in technology and talent are even more important to maintain the growth potential of the industry. GCC petrochemical companies have a dearth of opportunities at their fingertips—including projects with upstream entities within the value chain that can effectively leverage feedstock developments and expansions into performance or specialty products, or the consolidation of the industry and build scale. He stressed on the importance of events like PlastiCon and Plastivision Arabia which offer a platform where local and global plastic resin producers meet with their customers from the region and overseas to explore and develop current projects, and also to discuss ways in which to collaborate for developing new business opportunities.

Industry experts and analysts attending the Plastivision Arabia 2014 supported the concept of investments in the region by setting up dedicated parks for better manufacturing and processing of products locally. “The region is now focusing on downstream industries and plastics conversion, aiming to capitalise on the huge polymer capacity and to develop downstream manufacturing capabilities. The multi-industry event at Expo Centre Sharjah that became a gathering point for the region’s plastics, mould-making, printing and packaging industries was of the opinion that a dedicated industrial park will augur well for the regional plastics industry,” said Mr. Saif Mohammed Al Midfa, CEO, Expo Centre Sharjah.

Dr. Abdulwahab Al-Sadoun, Secretary General, GPCA 

Diverse exhibitors’ products and services

SOHAR Port and Freezone participated for the first time in the regional event.  SOHAR Port and Freezone is a deep sea port and free zone in the Middle East, situated in the Sultanate of Oman around 200 kilometers northwest of its capital Muscat. With current investments exceeding $15 billion, it is one of the world's largest port and free zone developments and lies at the center of global trade routes between Europe and Asia. Equipped with deep-water jetties capable of handling the world’s largest ships, SOHAR has leading global partners that operate its container, dry bulk, liquid and gas terminals including Hutchison Whampoa, C. Steinweg Oman, OiltankingOdfjell and Svitzer. SOHAR Port and Freezone is managed by Sohar Industrial Port Company (SIPC), a joint venture between the Port of Rotterdam and the Sultanate of Oman.

Edwin Lammers, Commercial Manager at Sohar said that SOHAR Port and Freezone did meet visitors with were serious and most could be potential investors in the Freezone. SOHAR attended to customer enquiries through a one-stop-shop. The personalized service help exceed investor expectations. “The location of SOHAR, outside of the Hormuz Strait, but within proximity of the major consumer markets, is key; the customers at the Port and Freezone have their sights primarily on the markets of the Gulf, Middle East and Indian sub-continent. Partnerships with reputable international players, such as Port of Rotterdam, Vale, Steinweg and Hutchison Whampoa provide a level of assurance and comfort to investors when looking for a base for activities.”

Mr. Lammers indicated that the general industry sentiment was fairly good given the investments and initiatives’ taking place in the region. There is a multibillion dollar investment programme taking place at SOHAR Port and Freezone. Oman Oil Refineries and Petroleum Industries (Orpic), the nation’s oil refining and petrochemicals flagship as well as its parent company, Oman Oil Company SAOC, will result in a major upsizing of the Petrochemicals Cluster at SOHAR.

Foreign participants marked a huge turnaround in the event. India-based Margo Industries marked their debut participation in the event. The company deals in plastic processing machinery like single screw extruder to manufacture HDPE/PPR pipes / granules, twin screw extruder for PVC pipe, profile / granulation, pipe down streams for PVC/HDPE/PPR/CPVC; semi/automatic material handling system for PVC compound, vacuum conveying system, liquid dosing and weighing system, hopper loaders, underwater pelletising system, parts for high-speed heater cooler mixer, automatic material handling system, etc.

Mr. Mukesh Patel, Marketing Head, Margo Industries

Mukesh Patel, Marketing Head at Margo Industries considered the feedback at the event was moderate and owned it to the modest visitor turnaround and number of queries pouring in. The region holds tremendous potential, he affirmed, hence confirmed his presence for the next edition, hoping that the third edition of the regional show will be more positive and promising.

Ms. Lili Shi, Manager, WideSky Machinery Company Limited

Lili Shi, Manager at WideSky Machinery Company Limited confirmed positivity regarding the show as thecompany sold seven sets of products during the four day event. WideSky Machinery Company Limited, founded in 1988, has a factory with two series of plastic machinery products; extrusion machine series, crusher series including pipe production lines, granulation lines, clean lines and a series of plastic machinery and auxiliary equipment such as crushers, grinders, mixers, flaring machines, cooling towers and water cooling machines. Ms. Shi said that the visitor figures were promising and they would definitely participate in the next year’s edition as this regional platform offers immense potential for industry experts and participants to gather together in order to exchange views and product information.

Mr. Ravi Babu, Manager, Banyan TradeLink UAE

Ravi Babu, Manager at Banyan TradeLink’s Dubai office said that even when the visitor figures were moderate, the number of queries weren’t too enticing either. The company is keen to establish a working presence in UAE by inaugurating an office here. Babu confirmed that of all the queries the event brought, one of them might convert into a deal with a prospect client.  Banyan Tradelink operates as an industrial machines exporter and supplier in Ahmedabad (Gujarat), India. The company deals in technologically advanced industrial cutting machines comprising of laser die board cutting machines, laser cloth cutting machines, laser engraving machine, laser engraving and cutting machines and CNC router machines.

CONTACTS

Mr. Mukesh Patel

Marketing Head

Margo Industries

Tel: +91-79 22774439 / 22740533

E-mail: mukesh.patel@margoindustries.com

Website: www.margoindustries.com

Ms. Lili Shi

Manager

WideSky Machinery Co. Limited

B01 international city, Dubai, UAE

Tel: +971-4 4560685

E-mail: sasha@wideskycn.com

Website: www.wideskycn.com

Mr. Edwin Lammers

Commercial Manager

Sohar Industrial Port Company

Tel: +96-8 26852700

E-mail: Edwin.lammers@soharportandfreezone.com

Website: www.soharportandfreezone.com

Mr. Ravi Babu

Manager

Banyan Tradelink

Tel: +91 9898643777/+971 52 910 1003

E-mail: rav020ss@gmail.com

Website: www.banyantradelink.in