With the necessary technical knowledge and capital already in place, petrochemical companies in the Gulf and Middle East are ideally positioned to integrate into the high value added downstream chain, while at the same time support governmental industry development policies, A.T. Kearney, one of the world's leading management consulting firms, said a whitepaper on the subject, ahead of the three-day annual Gulf Petrochemicals and Chemicals Association (GPCA) forum that starts today (Dec. 13) in Dubai. The study said expanding local manufacturing capacity downstream presents petrochemical players with benefits in three key areas: opportunities to maintain growth, capture further value and make a meaningful contribution to creating job placements for a young growing population. In association with the GPCA, A. T. Kearney has identified a four-step framework to guide petrochemical companies to the next industry development opportunity, to build on advantages inherent within existing value chains and achieve profitable growth for the long-term. Under the theme “Moving downstream - Creating added value and sustainable growth”, Dan Starta, managing director and partner, A.T. Kearney-Middle East, said the region “with one of the highest population growth rates in the world, expanding downstream will not only contribute to the region's overall GDP but will create fertile ground for the many job placements required for the younger population over the coming decades.” Louis Besland, partner A.T. Kearney Middle East, added “GCC petrochemical companies are strongly positioned to take the lead in downstream expansion. Existing global reach of GCC petrochemical players has embedded the industry with unique insight into trends and value chains of multiple segments, which can be leveraged to shape and support local development downstream.” Dr. Abdulwahab Al-Sadoun, secretary general, GPCA, said the “white paper reiterates the GPCA's conviction that sustainable value-creating opportunities lie downstream and are linked to the development of industrial clusters across the region, particularly those being established to provide input materials for the automotive, flexible packaging, and appliances sectors. Projects that produce new chemical products and create more employment opportunities, whether that is in the specialty chemicals or the performance polymers, are inevitable.” Prince Faisal Bin Turki, adviser to the Saudi Arabian Ministry of Petroleum & Mineral Resources, will be the keynote speaker at this year's annual forum. Prince Faisal is distinguished for his role in advancing the development of the petrochemical industry, both upstream and downstream. He is also the vice chairman of Saudi Arabia's National Program for Industrial Clusters.
