Date post: | 21-Nov-2014 |
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What do you believe are the greatest challenges facing the sector or industry you would
like to specialize in at IE?
What role do you hope to be able to play in this
sector or industry in the medium term?
® The Middle East petrochemical landscape
® The key challenges for the industry
® Pivotec, HyVent Technology & Gulf Interchem
® What makes us unique?
® Companies’ actions on industry’s challenges
Summary
The Middle East Petrochemical landscape
® Historic development attributable to unexploited, abundant natural gas reserves
® Phenomenal growth through organic expansion
® The sector in digits (2011):® Generates sales of 44.7 Bio USD® Accounts for 43% of non-oil exports® Saudi Arabia accounts for 67% of Middle East
production® 80% of production is exported outside Middle
East® 80,000 direct employment opportunities
The petrochemical market players
The key challenges for the industry
CREATE ECONOMIC
VALUE
Innovation
Value Chain
Responsible Supply Chain
PROTECT NATURAL
RESOURCES
Resource efficiency
Communities
Waste
DEVELOP PEOPLE
Employees Social commitment Ethics
Driving Growth through Sustainability
Why these key challenges?
Þ Capitalize on feedstock advantagesÞ Develop a less cyclical product base, thus
yielding more stable returns over the long termÞ Capture the value-adding that is now exportedÞ Newly distorted supply-demand balance due to– increasing export supply > shale gas innovation (US)
– decreasing import demand > MeOH-to-olefins (Asia)
Þ Rapid expansion of urban youth population– create value-adding job opportunities– leverage on multicultural diversity
The key challenges in action
Innovation
Innovation focus on Value creation Cost optimization Safety & quality
Acquire requisite technology & know-how for downstream developments
Increased budget allocation to R&D in strategically important areas of competence
Value Chain
Driving Growth through Sustainability
CREATE ECONOMIC
VALUE
PROTECT NATURAL
RESOURCES
DEVELOP PEOPLE
Focus on product lifecycle management Reduce non-renewable
energy & material inputs to process
Reduce environmental foot-print of manufacturing & distribution processes
Develop solutions to enable customers to reduce footprint
Develop solutions to reduce society’s footprint
Design product and process solutions to close the lifecycle through recovery of material and energy value.
Responsible Supply Chain
Infrastructure upgrade Port side facilities Railway Land Bridge (KSA) Road network
Challenge of piracy Address road safety Transport of hazardous
material
The key challenges in action
Resource efficiency Feedstock diversification Reduce carbon footprint
Reduce water usage Reduce emissions Reduce energy usage Reduce material loss
Communities
Driving Growth through Sustainability
CREATE ECONOMIC
VALUE
PROTECT NATURAL
RESOURCES
DEVELOP PEOPLE
Responsible Care® initiative endorsed
Leverage on community projects applied to Plastic related education Safety Water Health(care) Environment
Waste
Reduce waste generation
Develop innovative solutions to upcycle waste
Foster partnership & collaboration with specialized companies
The key challenges in action
Employees Attract & retain talent Improve employment of
local population Improve working &
living conditions Training & education
Social Commitment
Driving Growth through Sustainability
CREATE ECONOMIC
VALUE
PROTECT NATURAL
RESOURCES
DEVELOP PEOPLE
Downstream expansion necessity to cope with demographic pressures
Development of labor-intensive processing centers
Promote diversity
Ethics & compliance
Install Code of Ethics Competition Law International Trade
Controls Insider Trading and Stock
Tipping Conflicts of Interest Environment, Health,
Safety and Security Intellectual Property Product Risk
Management
Growth through downstream innovations shall require
® ability to access, acquire or develop technology® attrition and retention of skilled workers® mental shift in driving away from existing business
models® investor-friendly business environment
Growth through downstream innovations shall yield® generation of valuable job opportunities® reduction in environmental footprint® long-term sustainable societal developments® capture the value-adding creation at origin
The key challenges summarized
Since 2011, Bernard van den Wouwer has established three interlinked companies active in developing, processing, upcycling and trading chemical waste streams generated at petrochemical production facilities.
The core focus of the developments center aroundÞ low-value, highly complex (petro)chemical waste streamsÞ convert low-value streams into valuable chemical
productsÞ potential for upcycle recycling through innovative
technologyÞ zero waste-out-of-wasteÞ streams originating from Middle East production facilities
Pivotec, HyVent Technology & Gulf Interchem
Integration of the companies
HyVent Technology (Bahrain / The Netherlands) owner of patented technology for waste treatment (hydrothermal) owner of state-of-the-art laboratory in The Netherlands business model based on licensing agreements
Pivotec Arabia (Bahrain / Saudi Arabia) processing, production & treatment of organic or inorganic chemicals access to treatment technology through sourcing business model based on tolling fee agreements
Gulf Interchem (Bahrain) trading arm of the business set-up marketing of new chemical molecules on international market business model based on purchase-sales agreements
Road
to m
arke
t
Note: Bernard van den Wouwer is the Managing Director of all companies
Pioneering & innovatorÞ technology-driven knowledge base (chemistry,
engineering)Þ patentable innovations Þ first-time producer of chemical molecules in Saudi
ArabiaÞ total solution provider
Create shareholder value for petrochemical producer
Þ waste disposal cost savingÞ revenue generation from waste streams’ sale (pay-
for-waste)
What makes us unique?
What makes us unique? (cont.)
Sustainability approachÞ environmental-friendly treatment of waste
streamsÞ climb the “Waste Hierarchy”-ladder from disposal
to re-use / recycleÞ first-of-its-kind: waste streams drive innovation
Social engagementÞ direct employment opportunities for local
communityÞ high-end jobs throughout the treatment plant
Companies’ action on industry’s challenges
CREATE ECONOMIC
VALUE
Innovation
Value Chain
Responsible Supply Chain
PROTECT NATURAL
RESOURCES
Resource efficiency
Communities
Waste
DEVELOP PEOPLE
Employees Social commitment Ethics
Driving Growth through Sustainability
“The future will be green &
sustainable,
or not at all”
Adapted from Jonathon Porritt
Sources® GPCA website (www.gpca.org.ae)
® Sustainability Report Borouge 2012
® Sustainability Report Sabic 2012
® Annual Report Saudi Kayan 2012
® Annual Report Tasnee 2010® The GCC in 2020: Downstream Expansion in the
Middle East Chemical Industry (KPMG Report – Dec 2011)
® plant pictures: Borouge, Kemya, Tasnee, PetroRabigh, Saudi Kayan, Sharq, Petrokemya, BASF, Ineos, Qapco, Jana, Equate
Addendum