PETROCHEMICALS
Firms across the industry are consolidating and rationalizing with great speed, ensuring not only increased production levels at home but increasing market share abroad.
We wanted to make the world's largest TiO2 company. We used to be number two or three in the world, before becoming a quarter owner of a major company. The combination of Tronox and the TiO2 section of Cristal led to what we might now call a match made in heaven. The two companies complement each other. We are working in many countries, such as the US, South Africa, Australia, Brazil, France, the Netherlands, the UK, and China, in addition to Saudi Arabia. However, we differ from the rest because we have mines in Australia, South Africa, and Brazil and own three slagger plants, one in Jazan in Saudi Arabia and two in South Africa. We have TiO2 plants in eight countries, which makes us fully integrated and the largest and most efficient because we use the latest technology with chloride technology. Furthermore, the cash we have on hand will maximize our investment abilities and allow the company to concentrate on profitable future business ventures.
Since Saudi International Petrochemical Company's (Sipchem) inception as a private company in 1999, we have been a growth-focused company capitalizing on the availability and competitiveness of feedstock and global market conditions. Initially we focused on key products, the first of which was methanol. This commodity is an excellent product and had a good market. The second pillar of our strategy was to introduce new products in Saudi Arabia and the region. Other than methanol, all of Sipchem's products are unique in the Middle East. We wanted to bring in new technologies and innovations, as well as build new capabilities in the region rather than just being another competitor in the market. Our board and management has been focused since day one on growth in distinctive and unique products and on having a global presence. From our inception until now we average one major plant project every 18 months, which is fast growth for our industry.
We exceeded our capacity for the first time last year with high-quality polypropylene, increasing output from 450,000 to 503,000 tons in 2016. That was accomplished after we made improvements to our manufacturing facilities. We have also managed to secure more propylene apart from what we produce at our plant. Overall, we had a positive outlook for 2016 because of the work we did solving our problems with cooling systems, fixing issues with ruptures and leakages of cooling GRP pipes, and changing to above-ground carbon-steel pipes for better observation and monitoring. These pipes run for almost 16km underground and are all different sizes, and when they are underground it is difficult to accurately assess their condition. Thus, we also put many of the pipes aboveground. In 2016, we truly overhauled our cooling systems and affected a major turnaround in our plants. Additionally, we developed and implemented a new organizational structure. In 2015, we transformed the organization into having three pillars: corporate, manufacturing, and shared services.
PETROCHEMICALS
TABLE OF CONTENTS
Column
YB Pehin Dato Lim Jock Seng, Minister at the Prime Minister’s Office & Second Minister of Foreign Affairs and Trade, Brunei
TBY talks to YB Pehin Dato Lim Jock Seng, Minister at the Prime Minister's Office & Second Minister of Foreign Affairs and Trade, Brunei, on the sector.
read articleReview
A Crude Awakening
The Kingdom has made renewables a critical aspect of its ambitious Vision 2030 effort to diversify its economy and wean itself from a strictly carbon-based diet, not to mention empower local businesses and individuals to take up the mantle and lead the energy sector into the next generation.
read articleInterview
Abdulaziz AbdulKarim, Vice President of Procurement & Supply Chain Management (PSCM) , Saudi Aramco,
TBY talks to Abdulaziz AbdulKarim, Vice President of Procurement & Supply Chain Management (PSCM) at Saudi Aramco, on the IKTVA program, supporting local content, and looking back over a successful year.
read articleInterview
Ayman Abdullah Alfallaj, CEO, Thiqah
TBY talks to Ayman Abdullah Alfallaj, CEO of Thiqah, on how the private sector can keep pace with the speed of public reforms, delivering a strong and lasting value proposition, and integrating the fruits of privatization into the public sector.
read articleFocus: Technology Investments
Investment Calling
A technological revolution is underway in the Kingdom. Already one of the most tech-savvy nations in the Middle East, the Saudi market has long sought a thriving domestic technology and innovation scene. And with Vision 2030, it is on course to deliver just that.
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A Hejaz Unhindered
An ambitious series of road and rail projects from the Jordanian border down to the Indian Ocean are slated to open in part before the end of 2017. They bring the Kingdom that much nearer to its goal of greater non-carbon-based economic integration with the world.
read articleInterview
Sulaiman bin Abdullah Al-Hamdan, Former Minister of Transport and Minister, Civil Service
TBY talks to Sulaiman bin Abdullah Al-Hamdan, Former Minister of Transport and current Minister of Civil Service, on an attractive legislative framework for investment, railway linkages, and port developments.
read articleInterview
Rumaih M. Al-Rumaih, President, Public Transport Authority (PTA
TBY talks to Rumaih M. Al-Rumaih, President of Public Transport Authority (PTA) & Acting President of Saudi Railway Organization, on teaming up with commercially committed partners, making sure the Kingdom's land and sea bridges are of the first order, and providing employment for all the Kingdom's inhabitants.
read articleInterview
Nabeel M. Al-Amudi, President, Saudi Ports Authority, and Minister of Transport
TBY talks to Nabeel M. Al-Amudi, Minister of Transport, and President of Saudi Ports Authority, on optimally restricting concession agreements, resolving bottlenecks in the logistics chain, and privatizing as rapidly as possible.
read articleInterview
Khaled Bin Abdullah Al Hogail, CEO & Managing Director , Saudi Public Transport Company (SAPTCO)
TBY talks to Khaled Bin Abdullah Al Hogail, CEO & Managing Director of the Saudi Public Transport Company (SAPTCO), on the importance of strong and rational regulations, knowledge transfers, and unifying public and private transportation networks.
read articleInterview
Imad El-Zein, CEO, Auto World-Sixt Saudi Arabia
TBY talks to Imad El-Zein, CEO of Auto World-Sixt Saudi Arabia, on growing market share in challenging circumstances, partnering with world-class players to boost its local presence, and combining better services with lower costs.
read articleInterview
Saleh H. Al-Ghamdi, Acting CEO, Saudi Air Navigation Services Company (SANS)
TBY talks to Saleh H. Al-Ghamdi, Acting CEO of Saudi Air Navigation Services Company (SANS), on maximizing safe and effective services, effectively increasing the rate of Saudization, and easing the pathway of women into the workforce.
read articleInterview
Khalil Kutubkhanah, CEO, Jeddah Development and Urban Regeneration Company (JDURC)
TBY talks to Ibrahim Khalil Kutubkhanah, CEO of Jeddah Development and Urban Regeneration Company (JDURC), on Jeddah's unplanned settlements, the company's redevelopment projects, and its partnership model with the private sector.
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Dr. Khalid Bin Mohammed Al Shaibani, Deputy Minister, Planning and Health & Director of the Vision Realization Office
TBY talks to Dr. Khalid Bin Mohammed Al Shaibani, Deputy Minister for Planning and Health & Director of the Vision Realization Office, on reforms within the Ministry of Health, the corporatization of healthcare provision, and transformations in care delivery.
read articleInterview
Mohanad A. Dahlan, CEO, University of Business and Technology (UBT) Company
TBY talks to Mohanad A. Dahlan, CEO of University of Business and Technology (UBT) Company, on the evolution of the company, education investments, and upcoming sectors that will need support from the sector.
read articleFocus: Universities
Broad and Deep
As part of the continuing decentralization of higher education in Saudi Arabia, individual universities are pursuing their own paths to grow their faculties, engage with various international stakeholders, and ultimately move toward a more privatized future.
read articleInterview
Rafique Izhiman, Area General Manager KSA Jeddah, Yanbu Hotels
TBY talks to Rafique Izhiman, Area General Manager KSA Jeddah/Yanbu Hotels & General Manager, Intercontinental Hotel Group (IHG), Jeddah, on the role the firm plays in the market, expanding its footprint in the country, and expectations for 2017.
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