Petrochemical companies in the Middle East must be flexible and must be prepared to enter a new 'dynamic market' as the region is expected to dominate the global industry by 2020, experts said.
Speaking at the inauguration of Fifth Annual Gulf Petrochemical and Chemical Association (GPCA) Supply Chain conference in Dubai yesterday, they said reducing energy consumption will be crucial as the industry continues to develop at a rapid rate.
"Supply chain management in the Gulf is evolving and now is the time to look at important opportunities and close any gaps. One (such issue) is the sustainability of the supply chain in the Gulf," said Saleh Al-Shabnan, Vice Chairman of GPCA Supply Chain Committee and Vice President of Global Supply Chain Centre of Excellence, Saudi Basic Industries Corporation (SABIC).
"The perception is that the region is blessed with energy resources and therefore is not cautious about this. The supply chain industry here is as cautious as other regions, if not more so," he added.
Al-Shabnan said that sustainability will be one key area to focus on going forward as the industry continues to develop.
He added that SABIC is rolling out five initiatives that will improve fuel efficiency, reduce Carbon Dioxide emissions and energy consumption.
In his keynote address, Puneet Madan, Head of Supply Chain Management (Polymers), Reliance Industries said that the Middle East will have 386 production plants by 2015, producing 172 million metric tonnes of finished petrochemical products in that time.
"The Middle East, therefore, will continue to dominate the sector, despite facing challenges such as economic and political volatility, piracy, maritime restraints and environmental restraints," said Michael McCool, Partner and General Manager, A.T Kearney Hong Kong.
