Sabic plans to invest US$25 bln in capacity expansion

08-Nov-06

Saudi Basic Industries Corporation (Sabic) plans to invest US$25 bln in the next five years in expanding capacity from 47 million tons in 2005 to 130 million tons by 2020. Sabic, one of the world's 10 largest petrochemicals manufacturers, is planning to increase its global market share with major expansions in ethylene, propylene, ethylene glycol, polyethylene, polypropylene, styrene monomer, steel, methanol and urea. Growth of GDP in Saudi Arabia is currently estimated at 5.8% and expected to continue around 5%ent till 2009. This strong growth, boosted by strong oil and non-oil earning, provides a strong foundation for the growth of petrochemicals industry in the country. Development of petrochem industry in the Middle East, particularly the GCC countries is apparent from the fact that 50% of the growth in new ethylene capacity in the next five years will be in the Middle East. By 2010, ethylene production in Iran and the GCC countries is estimated to account for about 20% of the global capacity.