According to the National Industrial Clusters Program, the Saudi petrochemicals production is 16 million tons of polymer per year and is expected to rise to 20 million tons annually by 2020. The downstream sectors for petrochemicals and minerals has great potential for further growth in terms of production volume, product range and markets.
With its vast petrochemicals industry, Saudi Arabia is a major producer of the feedstocks used for plastics production (mainly ethylene, propylene, butadiene, benzene, methanol and xylene). Major raw materials suppliers to KSA’s plastics and packaging sector include SABIC, Tasnee, Petro Rabigh, Sipchem, Sahara and Saudi Chevron, with Sadara coming on the way. SABIC is the world’s fourth-largest petrochemical company, largest producer of ethylene glycol and methanol, third-largest producer of polyethylene and fourth-largest producer of polypropylene and polyolefins.
Downstream Industry is an investment for the future. It provides investors the opportunity to build and manufacture value-added downstream derivatives catering for local market and replacement of imports; taking advantage and benefits of the favorably priced raw materials and meaningful contribution to create more jobs to the new generations.
On average, downstream products present an order of magnitude higher in complexity, technical content and value, thus creating about 10 times the number of jobs required for basic industries.