INNOVATIVE PROPOSAL TO CREATE SPECIALIZED INDUSTRIAL PARKS CHAMBER OF COMMERCE EASTERN PROVINCE

NOVEMBER 12th , 2013 Dammam- KSA

No. 1

• Inspiring Start

• A Vision Was Realized

• Let us Build on Our Success

No. 2

THE ONLY JOB IN THESE TWO TOWNS (JUBAIL & YANBU) ????

No. 3

SUCCESSFUL TRANSFORMATION (JUBAIL & YANBU)…….INSPIRING CHANGE

No. 4

HOW IT WAS DONE?..ROYAL LEADERSHIP SET FRAMEWORK

PARTNERS IN CREATING CHANGE

THE VISION

“GLOBAL SUCCESS STORY”

The Outcome

FEED STOCK ADVANTAGE

Royal Commission Headed by

The King.

Members:

• Minister of Planning (VP)

• Minister of Industry. (Member)

• Minister of Finance. (Member)

• Vice Minister of Planning (Member)

• Shaikh. Khalid Al-Turki.

• Eng. Abdulaziz Gandora..

No. 5

SABIC CHEMICALS AND POLYMERS ENABLE AUTO INDUSTRY

Rubber tire:

PBR & Carbon Black

Seats:

Polyurethane

Light shield:

Polycarbonate

Electrical parts:

POM (PolyAcetal

Monomer) / DOP

Exterior parts:

Carbon Fiber (potential),

Polyurethane

Anti-freeze

Ethylene Glycol

Lubricants:

LAO and Ethoxylates

Paints and coatings: Acrylates,

OXO

MMA, Polyurethane & Ethoxylates

Powertrain body & chassis:

Metals

Exterior parts:

Plastics, Polyurethane

Structural panels: Polyurethane,

Plastics

Rubber:

Hoses, belts

Electronics:

Acrylonitrile Butadiene Styrene

(ABS), Polyurethane

Exterior parts:

Polycarbonate

Light shield:

PMMA

Rubber seals:

EPDM

No. 6

KSA SPECIALIZED INDUSTRIAL PARKS VISION ENABLES AUTO INDUSTRY INVESTORS

No. 7

POWER

SAUDI ARABIA MAJOR INDUSTRIAL CORPORATION MAP

Saudi Arabia HYDROCARBON

RESOURCES

Enablers

WATER REFINING METAL Basic Chemicals

Downstream Chemicals Specialized

Industrial

Parks provide

materials and

services

Auto industry

Household

industry

Non fossil fuel energy

industry Packaging

industry

No. 8

THE SPECIALIZED PARKS

Engineering Plastics Park

(POM, PMMA, Acrylonitrile

Butadiene Styrene (ABS),

Polycarbonate)

Metals Park Rubber Park (tire &

rubber goods)

Carbon Fiber Park Polyurethane Park

(seating & insulation)

Additives Park (fuel, lubricants

and construction)

Paints and Coatings

Park

The specialized parks will produce parts and finished materials for automotive and other

wide industrial application hosted in the kingdom of Saudi Arabia for consumption by

markets in Saudi Arabia, Middle East, Africa and Europe.

Personal care and

Detergents

No. 9

Source Ministry of Economy Central Department of

Statistics and Information Planning House 2011

+17kTa rubber compound

43kTa

rubber

parts

Local demand : 7 M m

Local capacity: 5,000 m

Local demand : 13 M tires

Local capacity: None Local demand : 2 M sqm

Local capacity: 300k sqm

Local demand : 1,150k M sqm

Local capacity: 300k sqm

KSA RUBBER MARKET

6147

6050

4727

2244 3076

17310

4151 Flooring Sheets

Hose

Belts & Straps

Gaskets/Seals

Un-vulcanized

Other

Gloves

No. 10

RUBBER PARK

RUBBER INDUSTRY OVERVIEW

Primary raw

materials

Utilities

Nat/Syn rubber

CBlack/Fillers

Fine Chem

Process Oil

Electricity

Steam

Machinery

Mixing

Tires

MRG

Steel cord

Fabric

Molds

Wire/Fabric

Metal Inserts

Semi finished

rubber (sheet etc)

Testing

Institutes

Warehouse

Distribution

Scrap and

Recycling

New Sales

Service/Repair Mold & Dies Engineering designs

(CAD/ CAM)

Info Centers

Trade

Association

Sales

Marketing

T&I; applications

know-how Tires

Hoses

Seals

Engine

belts

Conveyor

belts

END APPLICATIONS

No. 11

RUBBER PARK – 3D

No. 12

ENGINEERING PLASTICS (POM, PMMA, ABS AND POLYCARBONATE) PARK

•Example: POM Rod and Sheet is creating various

segments of metal replacement industries

•Few companies are in this business

Global POM Rods &

Sheet Demand (Demand is 150 KTA)

Sheet Rods

No. 13

Primary raw

materials

Utilities

MMA

Methanol

EG

Electricity

Steam

Machinery

Semi-Finished

Finished

Products

Rods & Sheet

Coloring

Sales

Marketing

Warehouse

Distribution

Scrap and

Recycling

New Sales

Service/Repair

Trade

Association

ENGINEERING PLASTICS PARK

Compounding

Gears

POM

Signage

(PMMA)

Displays

(PMMA)

No. 14

KSA CONSTRUCTION MARKET

Saudi Arabia’s $385 billion construction boom (2011-2015)

Saudi Arabia comprises the largest construction market in the whole of the Middle East

with multi-billion dollar projects under way and many more in the planning stage by both

the public and private sectors.

No. 15

POLYURETHANE PARK

Automotive

END APPLICATIONS

System

House

Performance

products Intermediates Commodities

SABIC KSA

System House

Tier 1&2 OEMs End producer

Target Anchors

T&I: applications know-how

ADDITIVES PARK OVERVIEW

Construction

No. 16

KSA PAINTS AND COATING MARKET

The GCC coatings market was estimated at USD 2.2 billion in the year 2011. The market

is expected to grow at a compounded annual growth rate (CAGR) of about 6% over the

next five years.

The Saudi Arabian market remains the biggest and brightest jewel in the region, with

paint demand approaching 900,000 tonnes.

Saudi Arabia’s $385 billion construction boom (2011-2015)

No. 17

PAINTS AND COATINGS PARK

Primary raw

materials

Acrylate

Esters

MMA

Surfactants /

stabilizers

Solvent

Electricity

Steam

Reacting Mixing

Resins

Primary raw

materials

Machinery

Pigments

Solvent

Additives

Utilities

Electricity

Steam

Architectural

Auto OEM /

Refinishing

Protective/

Industrial /

Marine

Warehouse

Distribution

Scrap and

Recycling

Utilities

Machinery

Sales

Marketing

END APPLICATIONS PAINTS AND COATINGS OVERVIEW

T&I: applications

know-how

No. 18

PERSONAL CARE AND DETERGENT PARK | VALUE CHAIN

No. 19

ADDITIVES PARK; LUBRICANTS AND FUEL ADDITIVES

Primary raw

materials

LAO C10 ,C8

, C12 & C20-

C24

Benzene

2-EH

strong nitric

acid

Naphthalene

Sulfuric acid

NBA

Ammonia

Mixing Reacting

Polyalphaolefins

(PAO)

Alkylnaphthalenes

Heavy alkyl

benzene sulfonate

2-EH Nitrate

2-Ethylhexylamine

Butylamine

Secondary raw

materials

Automotive

Aviation

Marine

Metalworking

fluids

Lubricants

Automotive

Diesel fuel

additives

Utilities

Electricity

Steam / N2

Water

Machinery

New sales

Service/

Repair

Corrosion

inhibitor

Fuel

additives

No. 20

ADDITIVES PARK; OIL & GAS / WATER TREATMENT

Reacting Mixing

Enhance oil recovery

Drilling fluid

Demulsifier

Corrosion inhibitor

Oil & gas

Utilities

Electricity

Steam / N2

Water

Machinery

New sales

Service/

Repair

Primary raw

materials

LAO C16 –

C18

SO3

Ethoxylates

LAO C16 –C18

Ethanolimines

Alpha olefin

sulfonate

Secondary raw

materials

EO/PO

Corrosion inhibitor

Deformer

Water treatment

PH controller

2-EH

Caustic Soda

Ethoxylates

Sodium

Laurylether

Sulfate

No. 21

ADDITIVES PARK; MINING CHEMICALS

Reacting Mixing Froth flotation

Anti-Foaming

Anti-caking

Anti-dusting

Ether amine

Dioctyl sulpho

succinate

Ethoxylates

Ethanolamines

Secondary raw

materials

Primary raw

materials

Acrylonitrile

2-EH

Maleic

anhydride

sodium

bisulfite

Butanol

Methanol

DEG

Utilities

Electricity

Steam / H2 /

N2

Water

Machinery

New sales

Service/

Repair

Applications

No. 22

LOCAL DEMAND/OPPORTUNITIES IN KSA FOR CF COMPOSITES

The Dokaae Tower,

Mecca, KSA Station - Haramain High Speed

Railway

27 Sliding Domes for the Prophet's

Holy Mosque in Medinah

Mobile Mataaf – Mecca, KSA The Mile Tower,

Jeddah, KSA

Pipes Repairing and Concrete

Reinforcement

No. 23

CARBON FIBER PARK

Primary raw

materials

Carbon Fiber

Chopped CF

Resin

Electricity

Steam

Sales

Marketing

Warehouse

Distribution

Trade

Association

Utilities

Short Fiber

Molding Comp.

Textiles

Pultrusion

Filament

Winding

Prepregs

Papers / Veils

Preforms

Automotive

Oil & Gas /

Press. Pipe

Aviation (Interior)

Pultruded Cables

Compounds

Wind Energy

Construction

Machinery

New Sales

Service/Repair T&I: applications know-how

WE TALKED ABOUT THE WHAT TO DO

NOW

WE TALK ABOUT THE HOW TO DO IT

No. 25

SAUDI ARABIA MAJOR INDUSTRIAL CORPORATION MAP

Enablers

Involve SABIC

Technology &

Innovation

Launch Specialized

Industrial Cluster Company

(SICCO)

Define Strategic

Procurement

Framework

Construct

Plug & Play

Industrial Cities

Replicate the

Saudization

Program from

5,000 to 75,000

No. 26

B $ B $

B $ B $

B $ B $

B $ B $

B $ B $

B $ B $

B $ B $ GOVERNMENT

SABIC

SAUDI ARAMCO

SWCC

SEC

STC

BIDDING

BIDDING

BIDDING

BIDDING

BIDDING

BIDDING B $

FRAGMENTED PROCUREMENT IS GOOD FOR THE PAST

B $

B $

B $

B $

B $

Who is buying ?

How ?

Wealth Drain

OTHERS B $ BIDDING

KSA

No. 27

GOVERNMENT

SABIC

SAUDI

ARAMCO

SWCC

SEC

OTHER

KSA ENFORCE

STRATEGIC

PROCUREMENT

FRAME WORK

Who Is Buying ? Consolidate Buying Power and

Link to Long Term Localization of Industry & Skills

B $

B $

B $

B $

B $

B $

JOBS

KSA SHALL ENABLE & ENFORCE STRATEGIC PROCUREMENT

No. 28

STRATEGIC PROCUREMENT FRAME WORK

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Strategic Procurement Frame Work

No. 29

SAUDI ARABIA MAJOR INDUSTRIAL CORPORATION MAP

Enablers

Involve SABIC

Technology &

Innovation

Launch Specialized

Industrial Cluster Company

(SICCO)

Define Strategic

Procurement

Framework

Construct

Plug & Play

Industrial Cities

Replicate the

Saudization

Program from

5,000 to 75,000

No. 30 THANK YOU

No. 31

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