Saudi Basic Industries Corp (SABIC), the world's number one petrochemicals company by market value, has "guarded optimism" that prices will recover in markets of USA, China and Europe. Demand in Europe was still sluggish but business in the Far East, including China, was much better for SABIC and business in India was also very good, Mohamed al-Mady said in an interview. "Our estimate is that 2010 is going to be a positive year. Judging from the last six months, we have guarded optimism."
In China, SABIC will increase its investment after securing government approval for a US$3 bln joint-venture plant with Sinopec in the region of Tianjin as one plant was not sufficient to cater to demand from the huge Chinese market, that is just beginning to grow. SABIC is considering new plants to boost total production to 130 mln tons of petrochemicals by 2020, up from 56 mln tons in 2008, which would require more plants.