The Petrochemical Industry in Saudi Arabia

German-Saudi Business Magazine October 2014

Oil & Gas MidstreamPetrochemical

The Petrochemical Industry in Saudi Arabia

German - Saudi Business Magazine

Andreas HergenrötherDelegate of GermanIndustry & Commercefor Saudi Arabia and Yemen

Editorial

Andreas Hergenröther

Dear readers,

Saudi Arabia is maintaining its leading position as the region’s largestpetrochemical producer with an annual 86.4 million tons of capacity. Home to more than a quarter of the world’s proven oil reserves, Saudi Arabia boasts over 257.8 trillion cubic feet of gas reserves, 40 percent of which is non-associated, making the Kingdom’s quantity of reserves the fourth largest in the world after Russia, Iran, and Qatar. Since more than 95 percent of the Saudi Arabia’s basic petrochemicals are derived from methane and natural gas feedstock, the country’s commitment to expanding its natural gas infrastructure will enhance itscompetitive advantage in the global petrochemical and plastics markets.According to the Royal Commission for Jubail & Yanbu, Saudi Arabia produces over 50 unique petrochemical products. There are around 60 petrochemicals projects currently in the pipeline. German companies have been strong partners for sustainable long-term business relations in the petrochemical sector in Saudi Arabia for decades. Chemical giant BASF plays an active part in the Saudiconstruction landscape, supplying construction chemicals to mega projectsincluding the two Holy mosques in Makkah and Madinah, the building of the King Abdul Aziz International Airport in Jeddah, King Abdullah Economic City, the Maaden Aluminium Smelter in Ras Al Khair. BASF also supplies products to prominent clients such as the Royal Commission for Jubail and Yanbu. Another example is the family-owned company Bischof+Klein that has been producing FFS packaging solutions on the basis of co-extruded films as well as stretch hood and shrink films. The plant in Dammam has a total output of almost 24,000 metric tons. German company Evonik Industries and Saudi Acrylic Acid Company (SAAC) have established a joint venture called Saudi Acrylic Polymers Company (SAPCo) for the production of superabsorbents. SAAC is a joint venture of the Saudi companies National Industrialization Company (Tasnee) and SaharaPetrochemicals. The production facility has an annual capacity of 80,000 metric tons. Other major investments were made in the petrochemical sector by Fuchs Petroleum which owns a modern industrial complex in Yanbu on an area of 10,000 square meters with an annual capacity of 160,000 metric tons of oils and lubricants, Henkel with manufacturing facilities in Dammam, Erndtebrücker Eisenwerk and Thyssen Krupp Uhde. “Made in Germany” is renowned around the world for its attributes of premium quality, state-of-the-art technology and know-how. The latter takes a pivotal role in the success story that “made in Germany” achieved and it is here that the German industry is a strong partner for many industries and regions, helping spread it to local production sites. To create a better awareness of the high potential of German-Saudi Arabian business relations we would like to present in this current edition the portfolios of some of the major petrochemical companies in the Kingdom.

1AHK Saudi Arabia - www.saudiarabien.ahk.de

Editorial

AHK Saudi Arabia

German Desk Opens in Jubail

Petrochemicals

Saudi Aramco

SABIC

Zamil Group

Ma’aden

Henkel Polybit

Tasnee Petrochemicals

SADARA

Evonik Industries

Bischof + Klein

BASF

Alhamrani-FUCHS

OKS

Zeppelin

Chemanol

Linde Engineering

ThyssenKrupp AG

Lurgi

EEW Global Pipe Company

LISEGA Arabia Co. Ltd.

Draeger Saudi Arabia

V-Line

IBE

Trade Fairs

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Contents

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Disclaimer:German–Saudi Business Magazine(GSBM), Issue October 2014

Editor-in-Chief Andreas Hergenröther

Head of Public RelationsChristian Engels

Responsible for PrintingAHK Saudi Arabia © Copyright GSBM 2014. All rights reserved.

No part of this magazine may be reproduced without GSBM’s written permission.The opinions expressed in GSBM do not necessarily reflect the views of the German Delegation of Industry and Commerce forSaudi Arabia and Yemen (AHK Saudi Arabia).GSBM is not responsible for the validity of contents in articles written by external authors.

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The Delegation of German Industry & Commerce for Saudi Arabia and Yemen (AHK Saudi Arabia) has been founded in 1978 by Royal decree under the name of German-Saudi Arabian Liaison Office for Economic Affairs (GESALO). AHK Saudi Arabia is part of the German Cham-ber Network and the official German Foreign business promotion. With 130 offices worldwide AHKs offer their experience, connections and services to German and companies of their partner countries. With a staff of 20 employees, AHK Saudi Arabia supports Saudi and German compa-nies with its services. AHKs are closely connected to the Chambers of Industry and Commerce (IHKs) in Germany. Together, they represent in total 3.6 million companies in Germany.

AHK Saudi Arabia is the official representative of German economy in Saudi Arabia. Besides this AHKs are service providers to companies under the brand “DEinternational” AHKs provide services to companies both from Germany and their host countries in order to support their foreign business activities. These services include conducting market studies and providing sector informa-tion, matchmaking, business consult-ing, organization and representation of trade shows, issuing business publications, legal information, medical treatment support and vocational training, etc.

AHK Saudi Arabia more than 30 years of experience

German-Saudi Arabian business relations follow a long tradition In 1978 the Joint German-Saudi Economic Committee composed by representatives of the German Minis-try for Economics and the Saudi Ministry of Finance decided to estab-lish a German foreign trade commis-sion in Saudi Arabia. On August 22nd 1978 was the inauguration of

HISTORY HISTORY

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The official representation of the German economy in Saudi Arabia

German - Saudi Business Magazine German - Saudi Business Magazine

AHK Saudi Arabiathe first office for German–Saudi economic relations, which has been established by Royal Decree.

Since October 2010 AndreasHergenröther is the current Delegate of German Industry and Commerce for Saudi Arabia and Yemen. Under his lead the German-Saudi business relations tightened within one year even more and many projects are on the way deepening these relations. In December 2010 the first German-Saudi Arabia Desk has beenestablished at the Bielefeld Chamber of Industry and Commerce. It functions as an information platform about Saudi Arabia for all German companies. Under the lead of Mr. Hergenröther more than 100 events in Germany and Saudi Arabia have been organized by AHK Saudi Arabia in order to promote German-Saudi business relations. With its services for German and Saudi companies AHK Saudi Arabia is in a key position for the bilateral economic relations. Every business-man, who is interested in doing business in Saudi Arabia or in Germany will find an individual concept of entering the market, promoting its business through trade fairs and find the perfect business partner from the other country.

It is also Saudi companies, business representatives and the Saudi Cham-bers network that clearly profit from GESALO’s work in the context of the German foreign trade promotion. On average, GESALO organizes 250 individual Business Partner Searches annually. This opens investment opportunities to Saudi companies as well as partnerships for technology and knowledge transfer. Numerous information events are being held by GESALO staff in Germany to promote Saudi Arabia as an invest-ment location and advocate for technology partnerships with Saudi companies. This contributes remark-

ably to making Saudi Arabia visible in the German economy. GESALO’s connections to the internationally important German fair sites foster the making of contacts between Saudi companies and German business partners with innovative technologies. For this reason, GESALO organizes numerous business delegations for Saudi Arabian exhibitors and visitors to trade fairs, aiming at promoting export and connecting Saudi compa-nies with German cooperation partners.

By delivering key technologies and providing know-how “Made in Germany”, German companies have been contributing for many years to the realization of projects that are of strategic value for Saudi Arabia, for example in the oil and gas sector, in petrochemicals, in the construction of power plants and grids, but also in border hedging.

Beyond this, the matter of vocational training has gained importance for Saudi Arabia. Also in this field, German companies and German know-how belong to the global top. GESALO has established itself as important relay station for optimized knowledge transfer and will continue to hold that position.

Both countries are the major players in their respective regions. Bilateral trade has risen from 4 bn US $ in 2003 to 10.8 bn US $ today by more than 170 %. Not only has the economic opening brought this success about, but also did the work of GESALO as a catalyst for business have a decisive share in that intense cooperation. Unlike bilateral trade, the field of investments is still waiting for more mutual engagement. GESALO is in the focus here, too. It serves asimportant contact point for both sides, to accompany potentialinvestors professionally.

AHK Saudi Arabia - www.saudiarabien.ahk.de

The ‘German Desk’ opened at the Jubail Branch of Asharqia Chamber aiming at facilitating transfer oftechnology for the industrialdevelopment at the twin citiesof Jubail.

Dr. Peter Ramsauer, Chairman of the Committee of the German Parliament for Economic Affairs & Energy,inaugurated the event last month.Mr. Hassan M. Al Zahrani, Vice-Chairman of Asharqia Chamber, Michael Ohnmacht, Acting German Ambassador to the Kingdom andMr. Andreas Hergenrother, Delegate of German Industry and Commerce for Saudi Arabia were present.

Germany is keenly interested inparticipating in the Kingdom’s on-going economic development, said Dr. Peter Ramsauer adding that he was amazed witnessing tremendous indus-trial development in Jubail. German technology and industrial equipment are of high quality compared to other countries, he noted.

Mr. Al Zahrani pointed out that the opening of the German Desk in the Kingdom’s industrial hub of Jubail will give a fresh boost to the already strong trade and commercial relations between Saudi Arabia and Germany. Many globally recognized petrochemi-cal plants built by the Saudi Arabian Basic Industries Corporation (SABIC) are based in the Jubail Industrial Cities-One and Two. In addition, Saudi Aramco has several large-scale new projects such as Sadara Chemical Company and Saudi Aramco Total Refining & Petrochemical Company located in the twin industrial cities,he said.

German companies have strong presence in the Saudi market offering high-tech products and expertise. Over 100 German companies are now represented in Saudi Arabia and their

combined investments, according to the Saudi Arabian General Investment Authority, reached over $8 billion, noted Mr. Zahrani.

He invited German firms to take advan-tage of liberalized economic policy and a package of incentives announced by the Saudi government for foreign investors. The liberalized economic policy has made Saudi Arabia the most favorable country for businesses in the Arab world, Middle East and North Africa region, observed Mr. Zahrani.

Currently, the annual two-way average trade has reached over SR42.7 billion, of which, Saudi imports from Germany are valued at around SR41.3 billion while Saudi exports to Germany are worth only 1.4 billion Riyal.

Mr. Zahrani offered Chamber’s willing-ness to cooperate with Germancompanies in order to support them in their efforts to identify trade and

investment opportunities in the Kingdom. Mr. Hergenrother noted that Germany is a key supplier oftechnology and know-how to the Kingdom particularly to its Eastern Province where many German compa-nies have established their production bases. These German firms included Linde (industrial gases), Siemens (gas turbines), BASF (construction chemi-cals), Kenkel (industrial coatings), Evonik (suberabsorbants), Bischof & Klein (packaging) and Erntebruecker Eisenwerke (pipelines).

Mr. Hergenrother mentioned the strong presence of the German logistic giant DHL which has become the largest German employer in the Kingdom employing over 4,000 people. For creating employment opportunities, DHL has been honored with the Prince Nayef Award for the highest Saudization quota of a foreign company in the Kingdom.

German Desk Opens in Jubail toFacilitate Transfer of Technology

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While most of Europe’s and Asia’s industries rely on naphtha, which is a crude oil derivate, most of theAmericas and the Middle East consume more of the light feedstock ethane and liquefied petroleum gas (LPG). Due to the abundance of oil in Saudi Arabia, the petrochemical sector will rely mostly on heavy feedstock.

The Saudi petrochemical sector is expected to grow due to several factors. First, Saudi Arabia has substantial proven feedstock reserves, with 264 billion barrels of crude oil, 297.7 trillion cubic feet (tcf) of natural gas and an estimated 600

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The Saudi Arabian petrochemicals sector is expected to advance and expand due to private andgovernment incentives and initiatives to diversify the country’s exportportfolio. The downstreaming initiatives already bear fruit and are set to quickly become a stable pillar in what is still considered an upstream economy. According to industry insight, Saudi Arabia’s petrochemical industry exports are set to reach 100 million tons by 2016. Ten percent of the global petrochemical export products have been manufactured in Jubail and Yanbu in the kingdom’s economically vibrant coastal regions. Both cities form the center of the petro-chemical industry and have played a key part in the Kingdom’s determina-tion to develop hydrocarbon-based industries. The Saudi Central Depart-ment of Statistics and Information (CDSI), numbers the total value of Saudi Arabia’s petrochemical exports with 66.64 billion SAR, approx. 14.206 billion € for 2012, growing at a 12-year CARG of 15 percent.

The Saudi Arabia petrochemical sector is well positioned in the region and driven by a positive global demand outlook. With an annual capacity of 86.4 tons of petrochemical products, Saudi Arabia is the region’s largest petrochemical producer. For ethylene, it is the world’s third largest producer, accounting for 11 percent of global ethylene production.

Petrochemical production capacities are forecast to remain at their already high level until 2016, when output is set to grow on a rapid pace through the coming-on-stream of Sadara’s petrochemical complex. Saudi Arabia

is challenged by rising prices ofexploration and production of non-associated gas, as well aspotentially rising petrochemical output of global competitors, whose competition will result in thinner profit margins. Recently discovered North American shale gas and oil which is currently flooding the market and driving down the world market price is likely to have an impact on the Saudi petrochemical sector, regardless the fact that the technology needed to extract it is still in its preliminary stage. MEED analyses the situation as follows: “While cracking liquid feedstock will not provide as high margins, the process produces a wider range of co-products that can increase the range of chemicals manu-factured in the region.”

The petrochemical industry depends on four main building blocks for developing end products. Petrochemi-cal cracking units produce ethylene, propylene, butadiene and benzene. These organic components are the byproduct of either natural gas or naphtha, which count as light or heavy feedstock respectively.

German - Saudi Business Magazine Petrochemicals Petrochemicals

Expansion of Downstreamingon a Large Scale in Saudi Arabia

tcf of unconventional shale gas. Second, albeit the strength of Saudi Arabia is in the production of simple petrochemical products in the present, companies such as Saudi ARAMCO and SABIC can calculate with government-guaranteed, low input prices, which are currently around 90 % cheaper than on the world market. By September 2014 U.S. natural gas costs stood at $4.29/mmbtu, whereas Saudi natural gas prices were have been fixed at Saudi Aramco’s pricing of $0.75/mmbtu for many years. Hence Saudi companies are expanding their petrochemical production capacities. On the contrary, European companies buy raw materials at world market prices. However, in reality theproduction costs of natural gasextraction in Saudi Arabia are much higher than the fixed price. Gas the Karan gas field costs inproduction $3.5/mmbtu, gas from the more difficult Arabiyah field will be even higher after launching produc-tion, up to $5.50/mmbtu. Third, the country has strong industrial and regulatory infrastructure, which have been inte-grated into speciallybuilt-up industrial cities. The Saudi Arabian Oil Company (ARAMCO) and the Saudi Basic Industries Corporation (SABIC) are the major actors in the sector. Being the world’s largest oil producer, ARAMCO is in a key position: The state-owned company invests inmulti-billion-dollar projects, acts as a shareholder of many joint ventures and provides the feedstock for numer-ous petrochemical plants. SABIC as the biggest company in the entire Middle East region was founded in 1976 to push forward the diversifica-tion of the local industry.

According to Gulf Petrochemicals and Chemicals Association, GCC member states were producing 39 million tons of petrochemical products in year 2000. Eight years later, in 2008, the production increased to 100 million tons. All in all, Saudi Arabia contributes three quarters to the production ofpetrochemicals in the entireGulf region.

Today, industrial products make up more than 90 percent of the Kingdom’s non-oil exports. Saudi Arabia exports petrochemicals, plastics, metal goods, construction materials and electrical appliances to some 90 countries.

Saudi decision makers putunprecedented efforts in the diversifi-cation of the down-stream industry to establish a labor intensive industry. SABIC and Saudi ARAMCO to-gether with many additional players in Saudi Arabia are undertak-ing the implementation process. In addition to increase the mass produc-tion of basic petrochemicals likepolyethylene and polypropylene, Saudi Arabia focuses on expanding its downstream activities. Down-stream products like acetone, carbon oxide, polyethylene etc., which are the basis of higher value added products, shall be produced in the Kingdom. Within the next five years, the production of 120 new chemicals will begin. The Middle East business intelligence MEED lists 26 projects in the Saudi petrochemical sector with an investment volume of 15 billion USD that are under construction. Another 42 planned petrochemical projects are 46 billion USD worth.

The goal of the country is to become a global leader in the petrochemical industry in the near future. Saudi Arabia has direct access to the required raw materials oil and gas and will be able in the future to extract shale gas, too. It thus has plenty of energy, which is needed to produce petrochemical products. This dynamic trend will intensify in the future. Beneficiaries of this reform could be German suppliers of machin-ery, the chemical industry, equip-ment, technologies and services. Moreover, the transfer of Know-How from Germany to Saudi Arabia is a major field of business to flourish.

The preconditions for German compa-nies are promising. Many German companies already have their share in the ascent of Saudi petrochemicals. An example how the future can look like is the joint venture Saudi Acrylic Polymers Company (SAPCo). In

August 2011 the company was founded by Evonik, Tasnee and Sahara Petrochemicals to produce 80.000 tons per year of superab-sorbent polymers in Jubail, starting in 2014. Another player on the Saudi market is The Linde Group which is collabo-rating with Sa-dara. The German company invests 380 million USD in Jubail to supply Sadara with carbon monoxide, hydrogen and ammonia at a chemical complex now being built by Sadara in Jubail. Bischof + Klein produces flexiblepackaging solutions in Al-Khobar and Zeppelin is active in Jubail in the plant manufacturing business. German plant and mechanical engineering companies, providers of technology and external suppliers will find vast investmentopportunities concerning theexpansion of petrochemical plants inSaudi Arabia and the Gulf region.

Among the largest projects currently planned or under execution in Saudi Arabia is a refinery and petrochemi-cal complex in Jubail that is being commissioned at the moment. The project is projected to 14 billion USD by Saudi Aramco Total Refining and Petrochemical Company. The plant will, among other facilities, include: a multi feed cracker, an aromatics complex, auxiliary utilities, a cooker unit, a conversion unit and crude storage tanks. Further plants being planned or constructed with a projected value of at least 1 billion USD are: refinery for cleantransportation fuel (Aramco), Dammam 7 - Acrylic Acid and Acrylates Complex, an elastomers project (KEMYA), the RabighRefining and Petrochemical Complex Expansion (Petrorabigh). Major investments like Sadara’s JubailPetrochemicals Complex and Aramco’s/Mitsubishi’s/Nabaa’s Yanbu Integrated Refinery and Petro-chemical Complex will be covered in the company’s respective profiles in the forthcoming articles.

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Recently, Aramco has made massive investments in its downstream opera-tions, which aim to increase the amount of refined products for domestic use and export, as well as drive industrial diversification. In this context, Aramco has invested almost $30bn in new refineries in the kingdom since 2009, with several billion more being spent on upgrad-ing and expanding existing facilities.

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The Saudi Arabian Oil Company (Saudi Aramco) is Saudi Arabia’s fully state-owned oil company. It ranks first among oil companies worldwide in terms of crude oil production and exports, and natural gas liquids (NGL) exports, and is among the leading producers of natural gas. Saudi Arabia administers the world’s largest crude oil reserves roughly one fifth of the global total at nearly 260.1bn barrels. It has aproduction capacity of 12.5 million barrels a day (b/d). Aramco makes an estimated $1bn a day from its vast oil exports, accounting for 51 per cent of Saudi Arabia’s GDP and 80 per cent of government revenues. Saudi Aramco is a fully integrated oil

company with operations in explo-ration, production, refining, market-ing and international shipping. It is rapidly progress-ing towards becom-ing the world’s leading integrated energy and chemicals company. The company has 57,000 employees and is headquartered in Dhahran in the Eastern Province of Saudi Arabia. Aramco has had a major share in the Kingdom’s achievements in integrat-ing its refining and petrochemicals facilities to realize further economic diversification. In recent years, the company has moved away from being a predominantly upstream operator to a fully diversifiedhydrocarbons company.

German - Saudi Business Magazine Saudi Aramco Saudi Aramco

In order to achieve that goal, Saudi Aramco has taken all possible steps to develop the country’s natural gas potential. The company is the sole producer of the feedstock in the kingdom. This includes not only the development of conventional small and large fields but also drilling of shale gas resources and furtherexploration of the kingdoms geologi-cal areas to discover further potential drilling sites. Promising wells are being expected in the so far largely unexplored Saudi Arabian Red Sea coastline. Gas makes already 50 % of the Saudi Arabian energy mix. Aramco operates seven refineries in the kingdom with an overall capacity of 2.5 million b/d. The overallcapacity is forecast to increase by 800,000 b/d until 2017 with two new refineries to start operations. The refineries are going to be built in the petrochemical and industrial hubs of the Kingdom, Jubail and Yanbu. A third refinery is under construction in the country’s remote and economi-cally relatively underdevelopedsouthern Jazan region, which lies at the Yemeni border. The 400,000 b/d complex, including a large network of petrochemicals plants, will be fully owned by Aramco and serve as one of the major job suppliers of planned

Jazan Economic City that is set to stimulate the region’s economicdevelopment. Internationally, Saudi Aramco holds substantial joint venture and invest-ment interests in refining and market-ing activities in the United States, the Republic of Korea, Japan, and China. Key market service support offices are located in major cities in North America, Europe and the Far East.

Sadara Chemical Company is one of Aramco’s successful Joint Ventures. It was established in 2011 incollaboration with US based Dow

Chemical. As already mentioned in the article above, the Joint Venture is setting up 26 production facilitiesin Jubail, capable of producing3 million tons of products every year.

This refining and petrochemicalsintegration initiative willensure downstream petro-chemicals facilities have ample supplies of liquid feedstock, such as naphtha, and natu-ral gas liquids (NGLs) to create a more diverse product slate, which can then be used forconversion industries.

The new downstreaming platforms will be based on technology and backed by initia-tives for fostering innovation. Currently, Aramco is strengthening its R&D programwith a technology agenda that incorporates both the upstream and downstream sectors.

According to MEED Vol 58/No 36, Saudi Aramco has to invest $ 40bn over the next decade to keep oil production capacity steady and double gas production. Saudi economy will need close to 40 million b/d of new capacity in the next twenty years to meet forecast demand growth.

Saudi Aramco

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compress and purify around 1,500 tons per day of raw carbon dioxide coming from two nearby ethylene glycol plants. The purified gaseous CO2 will be pipelined through the piping corridor of the RoyalCommission of Jubail to three SABIC-affiliated companies for enhancedmethanol and urea production. In summary, an estimated 500,000 tones of CO2 emissions will be saved each year.

Linde Engineering Dresden will beresponsible for the concept and basic engineering, front end engineering design (FEED) and detailed engineer-ing, procurement and con-struction (EPC) of the facility to be completed on a fast-track schedule. Mechanical completion is set to be achieved in 2015.

The plant is the first carbon capture and utilization (CCU) project of this size to be real-ized in Saudi Arabia. The reduction of CO2 emissions is an important aim in both SABIC's and Linde’s sustainability strategy.

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SABIC (Saudi Basic Industries Corpo-ration) was established by Royal decree in 1976 and its growth has been nothing short of miraculous. Today it is the Middle East’s largest listed company. SABIC’s creation was a bold step for a developing country. It marked a move into using the by-products of oil extraction to produce value-added commodities such as chemicals, polymers and fertilizers for export. SABIC is now the world’s largest ethylene producer. These commodities were also intended to create new industries, helping Saudi Arabia to diversify and to develop. Today, the company has operations in over 40 countries with a global workforce of over 40,000 individuals. Ranked amongthe world’s largest petrochemicalsmanufacturers, SABIC is a public company based in Riyadh, Saudi Arabia. 70% of the Company’s shares are owned by the Saudi Arabian government, with the remaining 30% held by private investors in Saudi Arabia and other countries of the Gulf Cooperation Council. SABIC is composed of six business units, each headed by an Executive Vice President. These are: Chemicals, Polymers, Performance Chemicals, Fertilizers, Metals and Innovative Plastics. These six operating units make four distinctly different kinds of products:• Chemicals - Chemicals and Performance Chemicals• Plastics - Polymers and Innovative Plastics• Fertilizers• Metals SABIC’s principle corporate offices and headquarters are in Riyadh, Saudi Arabia with major industrial operations in the industrial city of Al-Jubail on the Arabian Gulf, as well

as in Yanbu on the Red Sea. Net profits in 2013 touched SR 25.3 billion (US$ 6.7 billion). Total assets stood atSR 339.1 billion (US$ 90.4 billion) at the end of 2013. SABIC’s overall production has increased from 35 million metric tons in 2001 to 68.5 million metric tons in 2013. SABIC’s global presence continues to grow rapidly. Plans for expansion are matched by the development of an infrastructure of manufacturing plants, distribution centers, offices and storage facilities worldwide. The company’s manufacturing, sales, technology and innovation facilities are located throughout the globe and are managed by four regional offices: the Middle East and Africa, Asia, the Americas and Europe. SABIC has awarded Munich-based The Linde Group with a contract to build the world’s largest carbon dioxide (CO2) purification and liquefaction plant for Jubail United Petro-chemical Company (UNITED), a manufacturing affiliate of SABIC. The plant will be designed to

German - Saudi Business Magazine SABIC SABIC

SABIC and MRC (Mitsubishi Rayon Company) have confirmedincorporation of The Saudi Meth-acrylates Company (Saudi Meth-acrylates) in the beginning of the year and the appointment of CTCICorporation as the EPC construction partner for the plants be-ing built in Al-Jubail, Saudi Arabia. SABIC and MRC each have a 50% stake inthe joint venture. Under construction are acrylates plants for olefins and aromatics with a project volume of 520,000,000 US$. The plants will have a capacity of 250,000 t/y of MMA and 40,000 t/y of PMMA.

SABIC Europe and SABICin Germany

SABIC Europe BV is a SABICsubsidiary that includes all SABIC Polyolefin activities in Europe and employs nearly 6,000 people. Head-quartered in Sittard, the Netherlands, SABIC Europe has a European wide network of sales offices and logistic hubs, as well as three petrochemicalproduction sites in Europe: at Geleen (the Netherlands), at Teesside (United Kingdom), and at Gelsenkirchen (Germany).

SABIC Deutschland was established in 1972 to support the strong growth of SABIC activity in the German, Austrian and Swiss market. It has currently 23 employees working in Germany. Based in Düsseldorf, SABIC Deutschland GmbH currently serves more than 300 various sized companies in the plastics sector. Most of the polyethylene and polypropyl-ene is processed by SABIC’s custom-ers into end products for the consumer market, mainly films for packaging, but also applications such

as bottles, containers and pipes, as well as automotive parts.

In Gelsenkirchen, SABIC Europe produces several grades of polyethyl-ene and polypro-pylene. It is the main site for HDPE products in its bimodal HDPE plant. The logistical facilities inGelsenkirchen are state of the art with an innovative technology in the high rise warehouse. Oil-To-Chemicals

SABIC has announced plans to develop the Middle East’s first oil-to-chemicals complex in the Kingdom. Construction works will be launched after the completion of feasibility studies. Competition is mooted for 2020. The project will be located in Yanbu at the Red Sea coast. It is expected to create 100.000 new jobs. Yanbu complex will be able to process 200,000 barrels of oil a day. When complete, a petrochemicals refinery will process crude and feed the produce into three steam crackers. One will crack NGLs and liquefied petroleum gas, while a secondwill crack naphtha and a thirdfuel oil.

The product slate of the three crackers will include ethylene, propylene, butadiene, ben-zene, toluene and xylene. These will be fed into down-stream processing facilities at the

complex. Conservative budget estimates number the project to$ 30bn.

SABIC has about $ 7.5bn-worth of projects under execution, including its $ 3.4bn elas-tomers joint venture with the US’ Exxon Mobile at Jubail, whereas Saudi ARAMCO has $ 30bn-worth of petrochemicals schemes under execution in the Kingdom. The project would be the largest project ever realized in the Kingdom of Saudi Arabia. In fact, it would outnumber everything ever projected in the Kingdom two- or even three-fold.

Oil-to-chemicals technology entails crude oil entering the complex at one end and an extremely diverse product slate coming out the other. Processing 200.000 barrels per day would mean that between 50.000 to 80.000 additional barrels would be required every day to keep production running.

Each $ billion invested in the down-stream sector is producing four times more employ-ment than the same$ billion in the upstream side.

SABIC is set to spearhead the region’s petrochemicals industry in its conver-sion to-wards a more diversified, downstream-based future.

SABIC (Saudi BasicIndustries Corporation)

(Saudi International Petrochemical Company), and Sahara Petrochemical Company. Today, the company employs about 19,000 people in more than 60 countries.

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Zamil Group dates back as an enterprise to the early 20th century, but it has established its core indus-trial base only in the seventies. The range of products the company produces spans air-conditioningmanufacturing, plastics and steel abrication, paints, cranes and heavy process equipment. They are further

engaged in shipbuilding and repair, port operations and maintenance, petrochemicals and chemicals,industrial investment and general construction.

Zamil group has led the formation of major successful local petrochemical companies. These are Sipchem

German - Saudi Business Magazine Zamil Group

Zamil GroupSahara & SipchemPetrochemicals Co.

Sahara Petrochemicals Company (known as: Sahara) is a public company, listed on Tadawul since July 2004. Its biggest shareholder is Zamil Group with a 7.90 % share. 85.03 % are owned by the public. The firm is headquartered in Riyadh and employs about 500 people. Sahara Petrochemicals is involved in several downstream projects in partnership with major local and international firms. It has three joint venture production facilities that are located in Jubail Industrial City. The company further holds indirect stakes in five petrochemicals firms.

Sahara operates within the materials sector focusing on commodity chemi-cals. Its sub-sidiaries manufacture propylene, polypropylene, acrylic acid, mixed acrylate polymer, ethylene, low and high density polyethylene, caustic chlorine and ethylene dichloride.

SaharaPetrochemicals Co.

Sahara is based in Jubail, Saudi Arabia and was established inMay 2004. Sahara Petrochemicals participates in the formation of some limited liability companies in Jubail Industrial City, as

Joint Ventures with foreigncompanies to produce and market primary materials like propylene, polypropylene and polyethylene. It has the capacity to produce 467,000 tons of propylene per year in addition to 450,000 tons of polypropylene.

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German - Saudi Business Magazine Zamil Group

SipchemSaudi International Petrochemical Company (Sipchem) was established in 1999. It manufactures and markets methanol, butanediol, tetrahydro-furan, acetic acid, acetic anhydride, vinyl acetate monomer, as well as carbon monoxide through its various affiliates. Sipchem ranks among the top 17 companies in the Arab World in the category Petrochemicals. It has been listed on Saudi Stock Market since 2006. Sipchem serves itscustomers in the construction, solvents, automotive, electronics, polymer, coatings, and pharmaceuti-cal industries. Following its success during the last decade, Sipchem expands by launching severaldown-stream projects to manufacture Ethylene Vinyl Acetate, Low Density Polyethylene, Ethyl Acetate, Butyl Acetate, Cross Linkable Polyethyl-ene, and Semi conductive Compound that started in 2013.

Saudi International Petrochemical Company (Sipchem) has chosen Jubail Industrial City to build its industrial complex for producing various chemicals because this city is con-sidered one of the leading indus-trial areas in the world having all necessary infrastructure for such

large projects. The availability of raw materials in the Eastern province, the presence of Saudi Aramco that supplies required feedstock at very competitive prices and in largequantities, the ease of export from the city via King Fahd Industrial Port and its relative proximity to South East Asian countries to which most petro-chemicals are exported, are other reasons for this choice.

The site of Sipchem occupies anarea of over one million squaremeters in the basic industries partof Jubail Industrial City. Sipchem'sstrategy aims at integrating presentand future petrochemical and

chemical products to form a series of final added-value products in order to contribute to increasing the national production of Saudi Arabia.

Sipchem announced that its affiliatethe Sipchem Chemicals Company (LLC), has awarded an engineering design, procurement, construction, and commissioning (LSTK) contract for building a polybutyleneterephthalate (PBT) Resin Plant to ThyssenKrupp Industrial (former ThyssenKrupp Uhde) company of Germany on 18 June 2013. The plant will produce PBT Resin with an annual production capacity of 63 thousand metric tons and will be located in Al-Jubail Industrial City. The estimated project cost is ap-proximately SR 600 million and the plant is expected to start full operations at the end of 2014. PBT resin is a highly specialized thermo-plastic polymer used in manufactur-ing compounds in the automotive, the electrical, electronics and IT material industries. new PBT project will position the company as aglobal player in the polymers and engineering plastics industry.

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Henkel KGaA, leading solution provider for adhesives, sealants and functional coatings, entered into a joint venture agreement in 2005 with Polybit Industries Ltd, an established manufacturer of bitumen basedwaterproofing products in the UAE to form one of the largest companies manufacturing waterproofing and construction chemicals products in the GCC region.

“We are able to offer the latest technologies and best-in-class services to the customers in the fast moving and growing construction market in the region with the latest technical know-how from Henkel” says Naveen Antony, General Manager Sales.

With manufacturing facilities in Umm Al Quwain (UAE) and Dammam (K.S.A.) with Sales offices in UAE, Qatar, Bahrain, Oman, Kuwait, and the Kingdom of Saudi Arabia, the conglomerate with over 1000 personnel across all departments is well represented in the GCC and North Africa.

Competitive Advantage

In addition to offering extensive range of waterproofing products, Henkel Polybit also provides complete system solutions for tiling, industrial as well as interior floorings, Polyurethane insulating foamchemicals, structural joint sealants and structural repair products. Roofcare, a subsidiary of Henkel Polybit, is one of the leading applica-tion contractors offering unique roof waterproofing/thermal insulation as well as external thermal insulation systems assuring state of the art application of high end products.

“We provide real solutions because we manufacture all the products in our portfolio, unlike other manufac-tures in the waterproofing industry, who manufacture only limited products of certain categories and compliment it with an array of outsourced products,” explains Naveen Antony. “Being innovative and having a lean structure and strong customer orientation, strength-ens our competitive edge and maintains our leading position. This approach, aligned with Henkel’s global sustainability strategy, is the driver for all new product develop-ments in line with international and GCC green building codes.”

Henkel Polybit’s technical service team works closely togetherwith contractors, engineering & architectural consultants and authori-ties to ensure close customercommunication and react quickly to

international market trends and demands. “Our technical service team also conducts product trainings for consultants and specialised applica-tors to support them in understand-ing our product’s chemistry and scope of use” confirms Naveen Antony.

Henkel Polybit Collaboration

The Joint Venture (JV) is growing stronger and has enhanced the enterprise potential by leveraging the competence of Henkel in the Middle East & Africa region andimplementation of international business practices.

“We have had many synergies in the JV which has worked in our favor, the most prominent ones are in the promotion of Henkel products through our channels which resulted in the largest parquet flooring job in the Middle East for the tallest tower in the world today (Burj Khalifa). We have also had synergies in supply chain and logistics which has helped us to improve our efficiency in these domains.

Working in a booming economy, the heady growth rates also tested the organization and stretched it to its limit to respond to market demands. Settling in with a JV where twodifferent schools of thought strive to work together in such demanding situation was the biggest challenge”, says Naveen Antony.

Henkel PolybitIndustries Ltd.

Henkel Polybit

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planning, and delivery as well as key equipment and technology. The new plant will be producing on a capacity of 3,300 tons starting from 2016. It will thus be one of the largest ammonia plants worldwide. A new dual pressure process, engineered by the plant engineering specialist Thyssen-Krupp will be deployed in Ma’aden’s ammonia plant. This internationally unique technique ensures that the plant’s output is reliable and steady, and environment-friendly in addition. What is more, this technique allows single-train plants to produce 3,000 to 4,000 tons of ammonia per day.

To date there are only two plants of this size in operation worldwide, with a third under construction. The world’s biggest ammonia plant is also operated by Ma’aden and went into service in 2011. All plants use the dual-pressure ammonia processand other technologies fromThyssenKrupp Industrial.

The Saudi Arabian Mining Company (Ma’aden) was formed by Royal decree in 1997 to facilitate thedevelopment of Saudi Arabia's mineral resources and was originally wholly owned by the SaudiGovernment before 50% of its shares were floated on the Saudi Stock Exchange (Tadawul) in 2008.

Ma'aden has also developed itsactivities beyond gold with thedevelopment of Ma'aden Phosphate Company, which started production in 2011, its aluminium project which is currently under construction and a number of other projects. Ma'aden's exploration teams are working to expand available resources in existing business areas as well as to broaden the company's mineral portfolio. Ma’aden created a Joint Venture with SABIC for building a phosphate and fertilizer production plant in Ras Al Zour, which is an important project for the Saudi petrochemical industry. The 5.6bn USD project is set out to produce 3 million tons of

diammonium hydrogen phosphate (DAP), 400,000 tons of ammoniac and 200,000 tons of phosphoric acid annually. Another Ma’aden phosphate project, located in a new industrial city called Waad Al Shimal City, is anticipated to commence in 2016. Moreover, the company runs 18 mines in the country in which it extracts mainly gold, aluminum, phosphates and bauxite. ThyssenKrupp from Germany, one of the world’s largest steel producers, employing approximately 160,000 people in 80 countries, has been chosen to provide its ammonia technology for Ma'aden’s newammonia plant II in close proximity to Ras al Khair sea port on the Persian Gulf. ThyssenKrupp also providescomponents and systems for the automotive industry, elevators,escalators, material trading andindustrial services. The contractof ThyssenKrupp Industrial(former ThyssenKrupp Uhde), as subcontractor of Dealim, compre-hends licensing, engineering,

Ma’aden

Ma’aden

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factory with an annual production capacity of 455.000 ton, which was, then, the largest of its kind world-wide, and the polypropylene (PP) factory with an annual production capacity of 450.000 ton.

TASNEE owns 75% of SPC, whereas Basell ME Holding GMBH owns 25%, and production goes back to early 2004. The company has increasedthe annual production capacity of Polypropylene by 270.000 ton which lifts the total annual capacity ofthis factory to 720.000 ton ofPolypropylene.

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The National Industrialization Company (TASNEE) was established in 1985 as the first joint-stockindustrial company fully owned by the private sector. Tasnee made a net profit of 65 million USD in thethree months ending September 30.Tasnee (National Industrialization Company) has a Polyether Polyol and

Advanced Polyol and Derivatives plant under execution in Rabigh. The total investment for that project amounts to 106,600,000 US$.The plant shall produce 125,000 tons of polyol yearly. TASNEE has constructed TASNEE Petrochemical Complex in Jubail industrial city which consists of two projects:

Saudi Polyolefin’s Company (SPC)

The Company has two integrated factories namely, the propylene

German - Saudi Business Magazine Tasnee Petrochemicals Tasnee Petrochemicals

Saudi Ethylene and Polyethyl-ene Company (SEPC) SEPC has a unit for production of ethylene and propylene and two unites for production of polyethylene, and propylene. The company’s annual production capacity is one million ton of ethylene, 285.000 ton of propylene and 400.000 ton of high density polyethylene (HDPE), and 400.000 ton of low densitypolyethylene (LDPE).

Production of ethylene/propylene goes back to August 2008, and produc-tion of HDPE started in November 2008, and that of LPDE in March 2009.The polyethylene two factories arethe largest of their kind worldwide.The total investment cost of thewhole complex is SR 9.5 billion. The

plants are owned by TASNEE andSahara Olefins Company and BasellMoyen Orient Investments.

Tasnee has a further branch, the Saudi Acrylic Acid Company (SAAC) which is an integrated production complex, the only one of its kind in the Middle East. It produces various chemical products using hydrocarbon derivatives; 230.000 ton of Acrylic Acid and Butyl Acrylates, 340.000 ton of Butanol, and 80.000 ton ofSuperabsorbent Polymers (SAP).

Tasnee Cristal Global

Cristal Global is the world’s second largest producer of titanium dioxide and commercial and specialized titanium chemicals and environmen-tal and personal care products. It is one of the leading companies in the area of titanium dioxide applications. Tasnee holds a majority stake of Cristal Globe. Cristal Globe issupervising operation of eight plants in five continents namely: Ashtabula in Ohio, Baltimore in Maryland,

Salvador in Bahia, Stallingborough in the UK, Thann in France, Yanbu in Saudi Arabia, Bunbury in Australia and a mine site in Barabia, Brazil. The Company mainly focuses on the customer satisfaction and the techni-cal research and development services.

Saudi Acrylic AcidCo. (SAAC)

Acrylic Acid Company is a Joint Venture between Tasnee and German Evonic AG. Evonic is one of the world’s leading specialty chemicals producers. It has been active in the MENA-region for more than forty years. Evonic has a 25 % share in the Joint Venture. SAAC is a subsidiary of Tasnee & Sahara Olefins (TSOC), which is owned by Tasnee and Sahara Petrochemicals. Distribution of the superabsorbers produced in Jubail in selected countries in the region will be undertaken by a marketing joint venture with SAAC, in which Evonic has a 75 % share.

Tasnee Petrochemicals

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produce new intermediate products, which in turn will open up a whole new range of additional downstream opportunities.

Sadara is on track to deliver its first products in the second half of 2015, with the complex in full operation in 2016, according to MEED.

Product portfolio of SADARA will include, besides oil and gaschemicals, construction materials, cosmetics and shampoos, detergents and different kinds of elastomer products. The Linde Group stock company from Germany and Sadara

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The SADARA Chemical Company is a Joint Venture of Saudi Aramco(65 %) and Dow Chemical Company (35%), established in 2011. In this Joint Venture, one of the world’s leading suppliers of energy is collabo-rating with one of the world’s leading science and technology companies.

Sadara is constructing in JubailIndustrial City, Saudi Arabia, the world’s largest chemical complex ever built in a single phase, with 26 integrated world-scale manufactur-ing plants that will produce more than three million tons of diversified chemicals and plastic products every year. The complex will consist of a hydrocarbon and chlorine-based production facility. The facilities will be integrating the refining, chemicals and lubes for value addition and portfolio diversification of Aramco. Sadara will be a Fortune 500 company within the first year of full operation. The investment value for the project is set to $20bn. Producing such vast amounts of diversified chemicals and plastic products will enable SADARA to introduce new value-chains and high-performance products through-out the kingdom. Production of plastic and chemical products will start in the first half of 2015.

The complex will be, upon comple-tion, among the largest fully integrated chemical plants world-wide. The output will generate an estimated $ 10bn in revenues within a decade of commencing operations. Sadara will be the first chemical complex to crack naphtha in the countries of the Gulf Cooperation Council (GCC). This advance will open the door to new specialty chemi-cal plants and businesses in the Kingdom and take the Saudi chemical industry far beyond its existing commodity products. Cracking naphtha will make it possible to

German - Saudi Business Magazine SADARA SADARA

Chemical Company (Sadara) recently signed a long-term contract that will see Linde supply Sadara with carbon monoxide (CO), hydrogen (H2) and ammonia (NH3) at Jubail complex. Linde's Engineering Division will design, deliver and construct the new

turnkey gases facilities at Sadara's site in the Jubail 2 petrochemical cluster. The company will be building a two-stream HyCO plant, plus a single-stream NH3 unit producing waterless liquid ammonia. Linde will also install a large NH3 storage tank. The production units are scheduled to

be ready in 2015. Once built, they will be operated by Linde's Gases Division. Linde is setting up a local gases company for on-site support. Sadara will use carbon monoxide, hydrogen and ammonia primarily for the production of aromatics, isocyanates (MDI and TDI), amines and hydrogen peroxide. Methylene diphenyl diisocyanate (MDI) and 2,4 toluene diisocyanate (TDI) are used in the production of polyurethanes an essential component in many products ranging from synthetic fibers through insulating foam and adhesives to mattresses and car seats.More than half of the products Sadara offers will be targeted for expanding Asia Pacific markets, while the major-ity of the remainder will be sold in other key growth countries in Central and Eastern Europe, Africa and India.

SADARA

Evonik, the creative industrial group from Germany, is one of the world leaders in specialty chemicals.Profitable growth and a sustained increase in the value of the company form the heart of Evonik’s corporate strategy. Its activities focus on the key megatrends health, nutrition, resource efficiency and globalization.

Evonik benefits specifically from its innovative prowess and integratedtechnology platforms and is active in over 100 countries around the world. In fiscal 2013 more than 33,500 employees generated sales of around €12.7 billion and an operatingprofit (adjusted EBITDA) of about €2.0 billion.

Evonik has been very successful in the Middle East and North Africa for more than four decades with offices in Egypt, Aman, Jeddah and Dubai. In view of its attractive geographical position between Europe and Asia and the plentiful supply ofpetrochemical feedstock in the Gulf States, Evonik regards this region as strategically important and intends to participate in regional growth and expand its presence constantly.

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Evonik’s activities within the Kingdom of Saudi Arabia have been stepped up considerably in 2014, as the Superabsorbents 80 kt/aproduction joint venture with TASNEE and Sahara in Al Jubail came on stream and the sales and marketing activities for the whole Evonik product portfolio were bundled into the newly established Saudi Head quarters, Evonik Tasnee Marketing LLC (ETM), a joint venture between Evonik and Tasnee

Marketing. ETM, which has just moved into its new offices located in the Business Gate in Riyadh is not only in charge of the sales of the Superabsorbents from the plant in Al Jubail to the baby diaper industry, but also for the technical marketing of important Evonik products for the animal feed industry as well as specialty chemicals and additives for the petrochemical, polymer and coatings industry.

The ETM office is headed byGeneral Manager Hassan Wardani, an Egyptian/German Industrial Engineer already experienced in representing German Chemical firms in the Middle East. He has been successfully building up the new joint venture in Riyadh in order to further strengthen Evonik’s market position in Saudi Arabia. Hassan is supported by a strong teamof professionals with financial, customer service, sales andmarketing backgrounds. They combine specialty product know-

how with an understanding of the regional market and the Saudi business environment in particular. Hassan and his team very muchlook forward, together with localcustomers and partners, tocontinuing the long tradition of Evonik in Saudi Arabia by seizing


further opportunities for the great solutions Evonik products offer.ease refer to our homepage for more detailed product information:

http://www.evonik.com

Kingdom of Saudi Arabia, Riyadh, address and contact details:

Evonik Industries

Evonik Tasnee MarketingCompany Ltd.Phone +966 11 210 7179Fax +966 11 455 9854Qurtuba Business Gate,Building C2King Khalid InternationalAirport Road11496 RiyadhSaudi Arabiawww.evonik.com

Hassan Wardani (right), General Manager and Sulaiman M. AlKhereiji,Director Marketing & Sales

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In the Arabian Peninsula region,B+K MEC is assuming a leadingrole in the plastic industrialpackaging market. For over ten years now, the successful joint venture undertaken by German familyowned company Bischof + Klein and the two Saudi family-owned companiesH. A. Al-Zamil & Bros. Co. and Al-Rajhi House Enterprises plus Ahmed A. M. Al-Ohali has been producing FFS packaging solutions on the basis of co-extruded films as well as stretch hood and shrinkfilms. The company is based in Al-Khobar, not far from theAl Jubail industrial complex near to Dammam.

A second plant is being planned in the Rabigh petrochemicals complex. “We are profiting from the petro-chemicals industry’s strong growth and our outstanding reputation in the region”, explains Dr. Volker Pfennig, managing director of the B+K-GROUP. “Co-operation with the Saudi companies is outstanding. We are extremely satisfied.” Abdulaziz Al Zamil, the former chairman of the Royal Commission and one of the leading lights of the Kingdom’s industrialisation, is an honorary mem-ber of B+K MEC's advisory board. Since Saudi Arabia took the decision not only to extract its raw materials but also to further process

them itself, the petrochemicalsindustry within the country has been booming. B+K MEC's biggest customer is SABIC (Saudi Basic Industries Corporation), which boasts various production locations. In addition to Saudi companies, B+K MEC also supplies numerous compa-nies in the neighbouring states.

So far, B+K MEC has carried outproduction on nine FFS lines and two machines for the Smart-Flex® stretch hood range. At the end of October 2011, two additional FFS film lines will enter operation. The company's annual capacity will then amount to 24,500 tonnes of FFS films and 5,400

tonnes of stretch films according to B+K MEC's managing director, Yousif Al-Suwailem. 30% of the regular workforce come from Saudi Arabia; their colleagues are Lebanese, Filipinos, Indians, Bangla-deshi, Egyptians and Sudanese. Freddie de Mey has been head of production since 2010. The Belgian national was previously employed as technical director at B+K France in Pont Audemer. However, he was already very familiar with the region thanks to working at B+K MEC from 2002 to 2004.

In 2001, B+K MEC began producing printed tubular films for automati-cally packaging PE granules plus pallet protection films with 35 employees. To date, the plantoffers the most state-of-the-art filmproduction in the region. In addition, B+K MEC is the only local producer of stretch hood film.

The B+K-GROUP is a leading European full-service supplier of flexible plastic and paper packaging and technical films which boasts a strong worldwide network. In 2010, B+K employed a total of around 2,400 staff at six production plantsin Germany, France, the United Kingdom, Poland and Saudi Arabia. The company generated turnover of around 450 million Euros.

The B+K-GROUP’S product range encompasses the entire range of flexible packaging from traditional

industrial packaging and consumer packaging to special films fortechnical applications.

Bischof + Klein manufactures its products using the latest systems for m o n o / c o - e x t r u s i o n , g r a - v u r e / fl e x o g r a p h i cprinting, solvent-based/solvent free lamination and coating as well as for extrusion lamination and coating. Highly developed conversion technology with product-specific facilities for sealed, welded and adhesive designs enable individual production according tocustomers’ wishes.

Bischof + Klein enjoys outstanding relationships with all customers within the local petrochemicalsindustry and is anticipating further growth. Dr. Volker Pfennig: “The region is developing into acrucial location for the productionof PE granules. We wish to continueparticipating in this growth. At the same time, we are contributing towards the creation of jobs for the young, up-and-coming generation.”

About Bischof + Klein

Bischof + Klein (2010: 2,400employees, turnover approx. €450m) is one of Europe's leading full-service suppliers of flexible plastic and paper packaging and technical films. The B+K-GROUP manufactures at six production plants in Germany, France, the United Kingdom, Poland and Saudi Arabia, and has a world-wide network of sales offices. B+K's product range encompasses the entire range of flexible packaging and technical films from traditional industrial packaging and consumer packaging to special films fortechnical applications.

If you have any further questions, please contact:

Leading role in the region

Gudula BenningKommunikationTel. +49 (0) 54 81/9 20 - 1 99Fax +49 (0) 54 81/9 20 - 98 1 [email protected]

Middle East Company Middle East Company

B+K MEC joint venture very successful in Saudi Arabia

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At BASF, we create chemistry for asustainable future. Our expertise spans 150 years, during which time the company has been committed to combining economic success with environmental protection and social responsibility. Through science and innovation, customers across various industries are able to meet the current and future needs of society while conserving resources, ensuring nutrition and improving the overall quality of life.

BASF’s Innovation acrossIndustries

BASF’s petrochemicals division has amassed a huge amount of produc-tion and application expertise, supplying customers all over the world with sustainable and intelli-gent solutions. Thanks to its global presence, the division is represented in Europe, North America as well as the growing regions across Asia

Pacific and South America. The petro-chemicals division is at the heart of the unique BASF ‘Verbund’ and the cornerstone of the petrochemicals value chain. The petrochemicals division produces and sells anextensive range of high-quality basic and industrial chemicals and products tailored to the specific needs of customers. These are used to manufacture a variety of products including PET-bottles, antifreezes, coatings, superabsorbent polymers, and cling film.

BASF’s main products in this area include crackers, PVC and plasticiz-ers, alcohols and oxygenated solvents, industrial gases, and alkylene oxides and glycols. Most of these performance enhancing products contribute to quality and strength in other manufacturing processes and end-products. The Chemicals segment includes basic chemicals and intermediates. Its

portfolio ranges from solvents,plasticizers and high-volume mono-mers to glues and electronicchemicals as well as raw materials for detergents, plastics, textile fibers, paints and coatings, plant protection and pharmaceuticals. In addition to supplying customers in the chemical industry and numerous other sectors, BASF also ensures that other BASF segments are supplied withchemicals for producing downstream products. BASF’s Performance Products lend stability, color or improved applica-tion properties to many everyday items. The portfolio includes vitamins and other food additives as well as ingredients for pharmaceuti-cals and for hygiene, household, cosmetic and personal care items. Other products from this segment improve processes in the paperindustry, oil and gas production, mining and water treatment. They

help enhance the efficiency of fuels and lubricants, the effectiveness of adhesives and coatings and thestability of plastics.

BASF’s Functional Materials and Solutions segment offers bundle system solutions, services and innovative products for specific sectors and customers, particularly for the automotive, electrical,chemical and construction industries. The portfolio comprises of catalysts, battery materials, engineering plastics, polyurethane systems, automotive and industrial coatings and concrete admixtures as well asconstruction systems such as tile adhesives and decorative paints. These solutions are also beneficial in household applications and for sports and leisure. The Agricultural Solutions segment provides innovative solutions in chemical and biological cropprotection as well as seed treatment and solutions to manage water, nutrients and plant stress.

BASF’s research in plant biotechnol-ogy aims for greater efficiency in agriculture, better nutrition and use as renewable raw materials. The company focuses its exploration and production on oil and gas-rich regions in Europe, North Africa, South America, Russia and the Middle East. Together with their Russian partner Gazprom, BASF is active in the transport, storage and trading of natural gas in Europe. In the Natural Gas Trading business sector, sales were above the level of the previous second quarter. Lower gas prices were more than offsetby higher volumes. Because of sharply falling gas prices on the European spot markets for gas,we were able to optimize ourprocurement portfolio and consider-ably increase.

We emphasize onsustainability

Constant innovation is vital to BASF’s success and its sustainable solutions. The company’s sustainable management focusses on minimizing risks, optimizing business opportuni-ties and stakeholder engagements. Globally, we are also committed to establishing uniform standards for environmental, safety, security, health and labor standards. In line with this, BASF was recognized in the Dow Jones Sustainability Index in 2013 for its risk management system. BASF integrates and diligently adheres to sustainable criteria into its processes. Using a data-based,lifecycle monitoring approach, we assess impact of our projects and solutions. Across the company,we encourage sustainability on a daily basis by helping employees contribute to resource optimization,

conducting information sessions,and facilitating constructive dialogue between all stakeholders. The company also participates in the ‘Together for Sustainability’ initiative with leading chemical companiesin order to establish global standardi-zation of supplier evaluationsand auditing.

BASF’s commitmentto Saudi Arabia

Saudi BASF is part of the Germany-headquartered multinational BASF the Chemical Company. Saudi BASF was incorporated in January 2001, when it started operations and production of construction chemicals in the Second Industrial Area in Dammam.

Saudi BASF plays an active part in the Saudi construction landscape, supplying construction chemicals to mega-projects including the two holy mosques in Makkah and Madinah, the building of the King Abdul Aziz International Airport in Jeddah,King Abdullah Economic City, the Maaden Aluminium Smelter inRas Al Khair. BASF also supplies products to prominent clients such as the Royal Commission for Jubailand Yanbu.

BASFThe Chemical Co.

Alhamrani Group has begun to operate in the lubricating sector in 1979. In 1988 they established oil and lubricants blending plant. Since its inception, the Group has become a key player in this sector. In 1995, a joint venture was formed between the Alhamrani Group and Fuchs Petrolub AG (Germany), the world’s largest independent producer and distributor of high standard lubricants. Since then, the group has established itself as one of the largest oils and lubricants companies in Saudi Arabia.

Alhamrani Fuchs-Petroleum Saudi Arabia Ltd., owns a modern indus-trial complex in Yanbu on an area of 10,000 square meter, the largest of its kind in the Middle East and Africa,

JEDDAH Fuchs Oils’ ‘Keep Going’ campaign has moved into the second phase, offering four winners the chance to fly to Brazil with their ‘Titan Supersyn’ oil. This follows the success of raising awareness about Fuchs oil in the initial stage in which four winners were selected to attend the Barcelona and Manchester City match in the European Champions League, as well as spend three nights in Barcelona.

Ayman Darandary General Manager Marketing at Alhamrani-FuchsPetroleum Saudi Arabia Limited manufacturer of Fuchs oils, said that the new campaign will pick four people who will travel to Brazil for a 3-night stay, and thus get a chance to watch a World Cup match.

Participation in the competition is open to everyone who enters the campaign pages on social network-ing sites as their names areautomatically entered into the contest upon logging in. It is valid until May 25, 2014. “The success of the first part of the ‘Keep Going’ campaign especially in raising awareness about Fuchs oils, particularly the ‘Titan Supersyn’ oil range encouraged the company to release the second part for the World Cup”, Darandary noted.

“By launching the campaign, Alhamrani-Fuchs Petroleum Saudi Arabia Limited aims at rewarding users of ‘Titan Supersyn’ oils and

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with an annual capacity 160,000 metric ton of oils and lubricants.It manufactures a complete range of premium lubricants and other special-ties according to the world's highest standards. AFPSA Plant in Yanbu.

Al Sinayiah acquired quality certifi-cates ISO-9001:2008, ISO-14001:2004 and OHSAS 18001:2007. Fuchs focuses on quality and customer service. There are several synthetic lubricants which serve the local industries and vehicle owners. More than 41 service centers (One Stop) are available in Saudi Arabia serving the customers directly.

Industrial SectorWide customer base consisting of more that 600 industrial customers.

Serving special industries likePetrochemical, Fertilizer, Cement, Construction, Building Materials, Crusher Plants, Haulage Fleet,Power Generation Co’s, Agriculture, Railways and Food Industry.

Product Range• Gasoline Engine Oils• Gear & Transmission Oils • Hydraulic Oils• Industrial Oils• Diesel Engine Oils• Marine Oils• Greases• Antifreeze Coolant• Specialty Products

Alhamrani-FUCHS Alhamrani-FUCHS

Alhamrani-FUCHSPetroleum Saudi Arabia Ltd.

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Fuchs Launches Full Rangeof Synthetic Products

promoting it as the first option for customers in the Saudi market”, Darandary further said. “The company will continue to produce oils of highest international stand-ards to meet the needs of customers looking for strong performance and protection for their cars, as well as ensuring that Fuchs oils, the quality German oils, stay as an ideal option for all tasks”, he added.

‘Titan Supersyn’ oil is available in four different types to suit different types of engines, whether American, European or Japanese. ‘TitanSupersyn’ oils feature high

performance and extended use for a distance upto 15,000 km and high level of fuel economy. ‘TitanSupersyn’ oils are recommended for use in all passenger cars powered by gasoline. It also provides excellent protection against friction under all operating conditions, and prevents sedimentation in naturally aspirated or turbo charged engines, friction and wear will also be substantially reduced, contributing to lowmaintenance cost. ‘Titan Supersyn’ oils are environment friendly too.

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For more than 35 yearsOKS Spezialschmierstoffe GmbH, Germany, has produced speciality lubricants and chemo-technical products for applications incommercial and industrialmaintenance and repair operations. The company’s business model is based on a close cooperation with distribution partners in more than 50 countries, selling engineering supplies and mineral oils. OKS is a subsidiary of Freudenberg Chemical Specialities SE & Co. KG, which in turn is a business unit of theFreudenberg Group.

Product Portfolio

The company’s product portfolioconsists of roughly 150 tandardised, high-performance products for the reduction of friction, wear andcorrosion, as well as several customer-specific products. A range of anti-spatter agents for thewelding technology sector completes the portfolio. The product portfolio of OKS is essentially divided intotwo business divisions focusingon specific application areas andcustomer requirements.

The OKS “Chemo-technical Products for Industrial Main-tenance and Repair

“Operations”, offer customers in the field of manufacturing, processing and plant engineering industries with a large variety of lubricating products such as pastes, oils, greases, corrosion protection and mainte-nance products, cleaners and weld-ing agents. This range provides plant engineers, equipment operators, craftsmen, maintenance profession-als and processing engineers with the products they need for cleaning,


degreasing and protection of surfaces against abrasion, wear and corrosion. OKS products reduce assembly times, make disassembly easier, increase the service life of compo-nents, extend the maintenance cycles of plant and machinery, etc.

With its “Speciality Products”, OKS supplies a range of products that meet the specific requirements of certain user groups and industries, such as e.g. speciality lubricants for food processing industry or dry lubricants like bonded coatings.

Environment andproduct safety

Environmental protection and user safety are of great importance to OKS. The company’s Material Compliance Management system ensures compliance with all global standards and legal requirements in this area.

Technical expertise

The world of lubrication technology changes fast. This can be attributed to increasing demands from customers relating to efficiency, economy andreliability, as well as requirements for improved environmental compatibil-ity, easier and lower-cost disposal of used products and compatibility with modern materials such asceramics and plastics or legal require-ments. Close collaboration between the in-house development and production departments ensures that OKS can rapidly implement new technologies as innovative market-ready products.

Strong partnerships withspecialised dealers

Supply to market is provided through highly specialised partners such as Saudi Arabian Al Suroor United Group (ASUG), the OKS distribution partner for the Gulf Cooperation Council. Being one of the leading engineering procurement group specialized e.g. in services & facility management, civil structural, mechanical & piping works,electrical, instrumentation & process control and services to petrochemi-

cal, oil and gas industries and associ-ated services to other industrial sectors, Al Suroor is the perfect partner to market OKS speciality lubricants and maintenance products to industrial customers in the region.

The extensive education and training provided by OKS professionals to Al Suroor ensures that excellent techni-cal support and problem-solving expertise is available on the spot. OKS offers a comprehensive programme of training courses and seminars for its partners so that they are able to support customers compe-tently even in relation to the most complex application requirements.

Since 1989 Al Suroor United Group has served an impressive array of clients in diverse field of operations also with OKS products, amongst others crane lubrication in the steel industry, mould release in the plastic industry and corrosion protection in refineries. For further information please visit

OKS Spezialschmierstoffe GmbH

www.oks-germany.comand www.alsuroor.com

Experts in Chemo-technicalSpeciality Products

32 33



ZEPPELIN ZEPPELIN

The ZEPPELIN Group is a company with more than 100 years of tradition. The roots go back to the founder of the Airship Technology Ferdinand Count Zeppelin. Today the Zeppelin Group employs more than 6600 people at 190 locations worldwide and achieved sales of Euro 2.45 billion in the financial year 2011. Zeppelin is the provider of leading technology products in the markets served, and of the best service for these products. Zeppelin delivers to its customers the highest added value in the industry, enabling them to reinforce their own competitive strength.

ZEEPELIN Systems is the world market leader in the development, production and construction of systems for handling (storage, convey-ing, mixing, dosing and weighing)of high value bulk materials. Head-quarter is located in Friedrichshafen Germany with approx. 1100employees, working out of 19subsidiaries worldwide. Zeppelin Systems supplies plants to the Polymer, Plastics Processing, Rubber and Tire, Food and LiquidsProcessing Industry.

The GCC countries especially Saudi

Arabia is an important market for Zeppelin Systems to supply bulk material handling plants. One of the main products supplied with this plants are large Aluminum Silos and Blenders to store bulk materials such as polymer powders and pellets, general chemicals as well as raw materials for the Food Industry. In the past the silos had to be built directly on the customer site because the silos were shipped in parts and welded together on site. Already in 2006 Zeppelin Systems decided to execute an order containing more than 50 large silos and 20 km of piping not on

Contact:P.O. Box 1495,Al Jubail 31951Kingdom of Saudi Arabiawww.zeppelin-systems.comwww.zeppelin-gulf.comTel: +966(0)5 491 01071E-Mail: [email protected]

ZEPPELIN SystemsGulf Company Ltd.

customer site. For this projectZeppelin Systems established a manu-facturing facility directly in Saudi Arabia along the Dammam – Jubail Highway to build the large silos and do the pipe prefabrication. This set up was appreciated by the local industry in Jubail area and orders for new projects where secured.

ZEPPELIN SYSTEMS GULF CO. Ltd. has been established in 2008 to serve the Polymer- Plastics Process-ing- and Food Industry in Saudi Arabia and the GCC countries for Bulk Material Handling Systems, Pneumatic Conveying Systems and Silo Technology including Erection Work. Zeppelin Systems Gulf Co. has established a state of the art fabrication facility in Saudi Arabia Dammam – Jubail Highway, which is the first and only facility presently available in the whole Middle East to work as a local partner to the indus-try. The production range includes Silos and Blenders up to 2000 m³ and larger in aluminum as well as prefabri-cation of Piping in aluminum or stainless steel in accordance to DIN,

ASME or by buyers specification. To ensure reliable operation of the supplied plants Zeppelin Systems Gulf Co. provides local Service and Maintenance to the customers. A range of spare parts are kept on stock. In 2011 permanent office buildings where constructed to better suit our customers. A new branch Zeppelin Systems Gulf “Industrial Services”

starts in 2012 and is offering Welder Training, Welder Certification and non destructive material testing such as X-Ray, Ultrasonic and Colour Penetration. New class rooms and welding cabins where installed in the premises for first class welder training. The company is headed by German Management to ensure the high German Quality Standards to the market. With these new invest-ments Zeppelin Systems Gulf Co. has committed itself long term to the market in the Kingdom.

34


German The HELM AG is theexclusive marketing partner for Dimethylformamide for themanufacturer Chemanol in Saudi Arabia since 2009, marketing approx. 60,000 tons of per year. The principal feedstocks for DMF are methanol, ammonia and carbon mon-oxide. Chemanol announced in 2013 a plan to build a new production plant for specialty chemicals in the Western Region. The company's board has also approved construction of a new 60,000 mtpa sulphonated naphtha-lene formaldehyde plant at Jubail. The SAR75m ($20m) Jubail plant was started to being constructed in 2013, with commercial operations expected to be launched in 2015.

Methanol Chemicals Company Ltd. (former Saudi Formaldehyde Chemi-cal Company Limited) is a closed stock company formed by Saudi Arabian and GCC investors in 1989. Today, the company is completely Saudi-owned. Its main manufactur-ing site is located in Jubail Industrial City. The company is engaged in manufacturing 13 premium gradeMethanol Derivatives, such as Aque-ous & Urea Formaldehydes, Formal-dehyde derivatives, super plasticizers and various Amino resins, which have diverse applications including as agricultural fertilizers, pharmaceu-ticals, solvents, intermediates, lami-nates / wood industry, plastics, paper and the production of various types of concrete admixtures. Chemanol’s business model is based

on utilization of the Kingdom’s natural hydrocarbon resources to achieve substitution of imports by establishing petrochemical units to manufacture downstream products and the implementation of export oriented projects using the industrial infrastructure. Chemanol exports roughly 83 % of its products to more than 50 countries, including Germany. The company currently has a production capacity of 76,000 tons. In the year 2012, a newly built plant started production. Its capacity has grown to more than one million tons of Methanol and Formaldehyde and their respective derivates. Itsproduction of Methanol is mostly being used as self-supply forthe production of downstreampetrochemicals.

CHEMANOL CHEMANOL

Linde Linde

3736


In the 2013 financial year, The Linde Group generated revenue of EUR 16.65 bln, making it the world's largest gases and engineering company with approximately 63,500 employees working in more than 100 countries worldwide.

The Engineering Division is a leading technology partner in turnkey EPC projects worldwide. Its global success has been built over decades on its core technologies, extensive process engineering expertise, German precision in the planning and execution of turnkey projects.We are focused on vey strategic and promising market segments, natural gas treatment including NGL and LNG, petrochemical plants in particu-lar olefins and polyolefins, industrial gases as well as hydrogen and synthe-sis gas..

Process plants are some of the largest and most sophisticated building structures ever built. And only a selected numbef contractors are capable of designing andconstructing them.

With more than 1,000 process engineering patents and 4,000 completed plant projects, Linde is

among those leading international plant contractors. Linde is signifi-cantly strengthening its activities in the Middle East and North Africa region in order not only to meet but also exceed the needs of its customers in this rewarding market. With its regional Headquarters in Abu Dhabi, Linde has responded to significant opportunities offered by the Kingdom of Saudi Arabia, by estab-lishing strong companies in the Kingdom with offices in Riyadh, Al-Khobar and Al Jubail, in close proximity to key customers such as Saudi Aramco, SABIC and Tasnee and their assets.

One of the recent success stories is the long-term contract between the Linde Group and Sadara Chemical Company (Sadara), the world's largest chemical complex ever built in a single phase. "Linde Group's unique value proposi-tion is well demonstrated here where Linde Group has invested USD 380 million in this HyCO facility for the production of CO and H2 plus an ammonia plant. Linde's Engineering Division has designed and is build-ing the plant and once completed Linde Gases Division will be operat-

ing the plant and supplying Sadara with carbon monoxide (CO), hydro-gen (H2) and ammonia (NH3). A true seamless integrated solution." stated Ali Vezvaei, President of Linde AG Engineering, Middle East & North Africa.

Sadara, established in October 2011, is a joint venture developed by Saudi Arabian Oil Company (Saudi Aramco) and The Dow Chemical Company (Dow).

Linde's Engineering Division will design, deliver and construct the new turnkey gases facilities at Sadara's site in the Jubail 2 petrochemical cluster. The company will be build-ing a two-stream HyCO plant, plus a single-stream NH3 unit producing waterless liquid ammonia. Linde will also install a large NH3 storage tank, resulting in a sophisticated supply concept which will enable the plant to run smoothly and reliably at all times. “This contract is an excellent opportu-nity from several perspectives,” stated Professor Dr. Aldo Belloni, Member of the Executive Board of Linde AG. “It is Linde's largest on-site petrochemical project in this


region. It once again demonstrates our position as a global leader in the generation and supply of carbon monoxide for MDI and TDI produc-tion plants at integrated chemical hubs. The petrochemical industry is expanding rapidly in Saudi Arabia. We expect that this growth will give added momentum to the expansion of our gases and engineering business in the Middle East.”

The production units are scheduled to be ready in 2015. Sadara will use carbon monoxide, hydrogen and ammonia primarily for the produc-tion of aromatics, Isocyanates (MDI and TDI), amines and hydrogen peroxide. Methylene diphenyl di-isocyanate (MDI) and 2,4 toluene di-isocyanate (TDI) are used in theproduction of polyurethanes an essential component in many products ranging from synthetic fibers through insulating foam and adhesives to mattresses and car seats.

Sadara will construct, own and operate a world-scale integrated chemicals complex in Jubail Indus-trial City II in Saudi Arabia. Sadara will have a differentiated product mix, most of which are produced locally for the first time. This will create further growth opportunities for conversion and downstream industries in the adjacent PlasChem Park.

In 2013, Linde Engineering in Saudi Arabia was awarded a contract to build the world’s largest carbon dioxide (CO2) purification and liquefaction plant for Jubail United Petrochemical Company (UNITED), a manufacturing affiliate of SABIC (Saudi Basic Industries Corporation). The plant is located in Jubail Indus-trial City, Saudi Arabia.

It will be designed to compress and purify around 1,500 tonnes per day of raw carbon dioxide coming from two nearby ethylene glycol plants. The purified gaseous CO2 will be transported through the piping corridor of the RoyalCommission of Jubail to three

SABIC-affiliated companies for enhanced methanol and ureaproduction. Methanol is a basic component for the chemical industry and urea is used for fertilizerproduction.

Furthermore, it will be capable ofproducing 200 tonnes per day of liquid CO2 with food grade quality which will be stored and thereafter supplied by truck to the food and beverage industries.

Linde Engineering has been in the lead all the way from the concept phase, and front end engineering design (FEED) to basic and detailed engineering, procurement and eventually construction (EPC) of this complex facility that is expected to achieve Mechanical Completion in 2015.

“This is a true demonstration of SABIC's and Linde's commitment to sustainability as a main strategic pillar for future growth. We are proud to be SABIC's technology partner of choice in this prestigious project.” Said Mr. Vezvaei.

An estimated 500,000 tonnes of CO2 emissions will be captured and reused each year once the plant is in operation.

In addition, the Linde Gases division acquired 51% of the shares in the Saudi Arabian industrial gases company SIGAS (Saudi Industrial Gas Co. Ltd). The transaction was completed in January 2009 following receipt of approval from the relevant Saudi Arabian regulatory authorities. The family-owned company SIGAS is the second largest industrial gases company in Saudi Arabia.

With several projects, operations and plans in the kingdom, Linde has demonstrated its strong focus and commitment to the Kingdom's Oil&Gas and Petrochemical indus-tries, while once again underpinned its leading position as a technology provider and EPC contractor of choice.

Linde EngineeringTechnology leadership, Execution excellenceand a lifetime commitment in every step of the way

www.linde-engineering.com

ThyssenKrupp AG in Saudi Arabia ThyssenKrupp AG in Saudi Arabia

3938


Our Steel, Stainless Steel and Materi-als Business Areas serve our custom-ers with a wide range of material solutions, ranging from carbon- and stainless steel, tubes and pipes to nonferrous metals and plastics. Combining project management expertise, global connections, specific market knowledge and comprehen-sive services, our Materials Services/ThyssenKrupp Materials International supplies customers throughout the world with metals, alloys, minerals, industrial gases and coke. We also provide innovative technical and infrastructure services in railway equipment, civil engineer-

ing, port construction, plant and steel mill services covering all aspects of industrial production. A recent reference here is the supply of material and equipment for the North-South Railway project. Our portfolio also includes consultancy and planning services, equipment hire, customer and spare parts services as well as installation, maintenance and repair ofmachinery, plant and technical structures.

Our Elevator Technology Business Area is active in the area of passenger ransportation systems. Its range

includes passenger and freightelevators, stationary and mobile escalators, moving walks, passenger boarding bridges as well as stair and platform lifts. In addition to systems for the volume market, the portfolio also includes custom solutions as well as service, maintenance and modernization packages precisely tailored to customer requirements. Some recent references are the Mecca Clock Tower, Al Haramain Train Station, VIP Mobile Escalators for Saudi-Airlines, Princess Nora Univer-sity, Unite Towers and The Nation Tower. Our innovative TWIN is the first elevator system to have two cabs


running independently one above the other in the same shaft. This technology has many advantages over conventional elevator systems, including the fact that waiting and travel times are reduced to a minimum thanks in part to the use of an intelligent destination selection control system. In addition, the higher capacity allows the number of shafts needed to be reduced by up to a third, freeing up additional useful space in the building across all floors. This innovative solution has been installed in the CMA Tower. In our Business Area Plant Technol-ogy, which includes the planning and construction of chemical plants, refineries and other industrial plants, equipment for the cement and miner-als industry, machinery, plant and systems for the mining, processing, handling and transportation of raw materials and minerals? Thyssen-Krupp Polysius is a strong partner of the cement and minerals industry, offering project elaboration, engineer-ing and design, shipment, field assembly and commissioning, as well as comprehensive serviceactivities, for complete production lines, individual products, plantconversions and upgrades. Numer-ous cement producers in Saudi Arabia, Yamama Cement Co. and Eastern Province Cement Co. now rely on our technology and innova-tive solutions. The experience of ThyssenKrupp Foerdertechnik in the mining, materials handling and mineral processing industries makes us the partner of choice from planning to operation. Numerous plants have been engineered, supplied and installed at sites of Riyadh Cement Co., Al Safwa Cement Co., Southern Province Cement Co., Saudi Cement Co. and Yamama Cement Co. With the construction of the world’s two largest ammonia plants for our customers Safco and Ma’aden, ThyssenKrupp Industrial has

succeeded in improving its clients’ reputation with their as yet unbeaten capacity record. Furthermore, it is represented in the Saudi Arabian market with proprietary technologies (polyester, electrolysis, ethylene dichloride) and other products. In addition, ThyssenKrupp Industrial has also invested in yet more on-site competence in the form of local organizations and international partnerships which enable us to keep up with the ever-increasing number of customers on the world market. Depending on the project and the requirements of the customer, we find tailor-made solution for collabo-ration with local and international suppliers and engineering partners. These services cover our entire range from the initial concept drafting, process orientation, and basic and detail engineering packages to turnkey completion of the plant. As a process-oriented company, we

combine the technical expertise from our wide range of processes with innovation and value engineering. Our special brand of corporate perfor-mance and efficiency is based on the fact that the company can offer complete process chains in many technological fields and hasconsequently accumulated a wealth of experience in dealing with process-related tasks. As an experienced plant construction company, ThyssenKrupp PlantTechnology is well equipped to ensure success and can rely on the extensive competence of its diverse technical divisions and our local organizations to provide intelligent solutions. Moreover, the teamspirit of our motivated, highly qualified employees guarantees optimum service for our customers in Saudi Arabia.

ThyssenKrupp AGin Saudi ArabiaFor more than 6 decades, ThyssenKrupp has beenactive in Saudi Arabia with own subsidiaries andbranches in Riyadh, Jeddah, Al Khobar.

Lurgi Lurgi

4140


Air Liquide Global E&C Solutions is a premium strategic partner and a world leader in engineering and construction, able to meet constantly growing customer needs and to exceed their expectations through creative, safe, reliable and competi-tive solutions with an optimum balance of investment and operating cost, and with efficient project management.

One stop shop

Over the years, we have developed proven project execution processes and tools across the entire project

lifecycle. We have gained a signifi-cant amount of experience in projects involving a variety of scenarios,from high-value projects and EPC (Engineering Procurement Construc-tion) scenarios, to complex designs involving multiple technologies.

Present since decades in the Middle East, and very well know via its Lurgi brand (Lurgi was integrated in Air Liquide in 2007) Air Liquide Global E&C Solutions has therequisite operational and industrial experience, and a global understand-ing of your challenges in monetizing natural gas. Based on your specific


environment and objectives, we create customized solutions based on our wide portfolio of natural gas conditioning technology.

Natural gas is a growing energy source at the same an abundant feedstock. Natural gas offersdiversified gas usages, such as LNG as well as downstream products (MeOH, MTP, DME). Since a lot of new sources of natural gas are sour and its composition varies widely,an appropriate treatment andprocessing is essential, defined to clients’ needs according to the mixture of impurities.

Air Liquide Global E&C Solutions offers products that fit each client’s challenges, relying on or knowledge and capabilities across the entire gas treatment value chain.

Proven technology

The world’s largest LNG plant in Qatar uses our gas treatmenttechnology. The latest train started

up in 2011 with a capacity of 1,577 MMSCFD of raw sour gas. The challenging part was not only to remove carbon dioxide and H2S; rather, in addition mercaptans and carbonyl sulfide (COS), present in levels too high to be processed in the downstream liquefaction unit had to be removed first.

Air Liquide Global E&C Solutions supplied the integrated natural gasprocessing concept OmniSulf®,including the acid gas removal, sulfur recovery unit, Lurgi Tail Gas treatment® and Aquisulf®. This allows to guarantee a sulfur recovery of more than 99.9% for the whole complex. Our design achieves less than 1ppm COS in the product gas as well as 10 ppm CO2 and 2 ppm of H2S. The client’s challenge is to ensure that the end productspecifications as well as environmen-tal requirements are met.

In its own plants Air Liquide is operating its own SRU (SulfurRecovery Unit inoperational), using

the in-house Lurgi sulfur manage-ment technologies. Through a constant operational feedback within our Group, we continuously optimize our processes and provideinnovative solutions, which are tried and tested.

Our references

We have contracted:

• More than 170 Lurgi Claus® plants • More than 40 Lurgi OxyClaus® burners• More than 60 Lurgi tail gas treating® processes• More than 50 Aquisulf ® plants

Contact information: Grégoire Nollet, Grégoire Nollet Vice President, Middle East, India Zone, Air Liquide Global E&C Solutions, www.engineeringsolutions.airliquie.com. The YASREF Refinery Project involves the construction andoperation of a 400,000 barrel per day (bpd) integrated petroleum refinery in the Yanbu Industrial City located on the west coast of Saudi Arabia along the Red Sea, and Air Liquide Global E&C Solutions currently provides to its client Air Liquide Arabia project execution and process technology and equipment for the HGU (Hydrogen Generation Unit) Plant to supply YASREF with the required H2.

Beginning of 2014 Air Liquide Global E&C Solutions got the order to license an Acid Gas Removal Unit in Jazan Area to reduce pollutants hazardous to environment and further production. The plant is planned to be operational 2016.

Lurgi Saudi ArabiaSolutions for the Middle EastGenuinely committed to innovation byconstantly enhancing its comprehensiveportfolio of proprietary technologies.

Your Challenge

Raw

Nat

ural

Gas

Our Solution

Amine Units

PurisolMolsieves

Lurgi SulfurManagement

CryogenicPurification

One

Sto

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hop

Om

nisu

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Membranes (Medal)

Mercaptans

CO2/H2S/COS

H2S

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42


Progress originates from thewillingness to face challenges with farsightedness. This attitude made the German company Erndte-bruecker Eisenwerk GmbH & Co. KG (EEW) to one of the world’s leading specialists for the production of longitudinal submerged arc welded (LSAW) pipes. Since the foundation in 1936, the EEW Group has expanded considerably with four production facilities in Germany and further mills in Korea, Malaysia and Saudi Arabia, EEW is today in the position to produce 800.000 tons of steel pipes per year. Saudi Aramco as well as all major companies operating in the oil and gas business put their trust in products of the still family-run company.

The youngest member of the EEW Group is the EEW Global Pipe Company (EEW GPC) in Saudi Arabia. EEW GPC was founded in late 2010, when EEW decided to break into a new market segment. Besides the traditional business in the process and offshore construction industry, EEW planned to strengthen its activities in the pipeline industry. Jubail Industrial City, Saudi Arabia, was considered as an ideal location for the establishment of a pipe mill which is specialised in the production of line pipes for the oil, gas,petrochemical, power generating and civil engineering industries.Christoph Schorge, associate of EEW and vice president of EEW GPC points out the competitive advan-

EEW Global Pipe Co.

tages of EEW GPC as follows: ‘EEW Global Pipe Company is the first manufacturer of LSAW pipes in the Middle East which is able to offer line pipes up to 50.8 mm wall thickness. Our location in Jubail enables us to serve the attractive line pipe market of the MENA region. Moreover, we are close to Saudi Aramco, one of our most important customers’.

With Saudi Steel Pipe Company, Pan Gulf Holding and Mr. Ahmed Al-Khonaini, EEW has found perfect partners for the successful realisation of the Saudi-German joint venture. The total investment volume for the project exceeded 176 Mio. USD. This investment was necessary to set up a state-of-the-art production facility. ‘To be competitive in the pipeline indus-try, efficiency has highest priority. Therefore, it was essential to establish a pipe mill equipped with most modern machinery which enables the

production of large lots. Most of the machinery was provided by German mechanical engineering companies with whom EEW maintain close relationships’, explains Christoph Schorge. Besides Germany, the joint venture ‘EEW GPC’ was also supported from Saudi Arabian side. ‘Both of us, our Saudi Arabian partners and we were glad that the Saudi Industrial Development Fund (SIDF) helped us to launch the new pipe mill. Without their financial support, it would have been very difficult to realise a project of this size in Saudi Arabia’, Christoph Schorge continues.

After the foundation in late 2010, the first pipes were already produced at EEW GPC in spring 2013. According to Christoph Schorge there are two main reasons why EEW GPC was able to become operational in such a short time: ‘On the one hand, we have three strong Saudi Arabian partners who are familiar with the local condi-tions. On the other hand, the EEW Group disposes of a strong interna-tional network which could provide the appropriate technical know-how and skills.’ In the meantime EEW GPC successfully gained all certifica-tions which are necessary for the production of LSAW pipes as well as the Saudi Aramco approval ideal preconditions to cover shortly the 200,000 tons annual productioncapacity of EEW GPC.

LISEGA Arabia Co. Ltd. LISEGA Arabia Co. Ltd.

4544


LISEGA Arabia is a joint venture between Saudi-based Company Kinetic Energy Factory Company “KEKSA” (Saudi Aramco approved manufacturer and contractor) and LISEGA SE (Germany), the world’s market leader in pipe supports.LISEGA SE, headquartered in Germany with subsidiaries in France, UK, USA, and China, has over 50 years of experience in pipe supports for major plant engineering and construction. The company’s superior design and technology for pipe support products have applica-tions in the power, chemical and petrochemical industries, thermal power plants, incineration plants and similar facilities. LISEGA’s trade-

mark software, design, and modular system have a reputation forensuring significant cost-savings foreach installation.

KEKSA is a subsidiary of theengineering services company AMCDE and has been manufactur-ing pipe supports in KSA since 2007. KEKSA also specializes in manufac-turing of spring hangers and custom-ized pipe supports for thedemanding applications of thepetrochemical, oil and gas, and power generation industries. This joint venture successfully links the technical expertise of LISEGA SE with the local knowledge of KEKSA

to optimally serve the GCC market for pipe supports.

As a Saudi based company with state-of-the-art facility in Jubail Indus-trial City (KSA), LISEGA Arabia offers complete range of reliable and quality pipe supports at competitive price with shorter delivery time than competitors.

Through KEKSA/LISEGA Arabia, we have earned reputation for project execution excellence, manufactured and supplied supports for Saudi Aramco’s YERP, SADARA, Petro Rabigh Petrochemical, Shaybah & District Cooling Scheme (Dhahran) projects.


LISEGA Arabia Co. Ltd. provider in GCC by nurturing our partnerships, building on our client base, and creating long-term value for the petrochemical, Oil & Gas, and Power Generation industries.

Services:

Pipe supports is an integral part of the pipe systems, hence theoperational safety of the supports is having a significant impact on smooth operations of piping systems. Therefore, LISEGA Arabia also offers field services and makes valuable contribution to:

- Prevent costly damages and shut-downs- Increase operational safety- Guarantee plant availability- Secure long life of piping, associated equipment, and supports

In addition, we have also supplied pipe supports for SEC & MAADENin KSA, and in other GCCcompanies like DUBAL, KOC, KNPC, Qatar Petroleum & OMC as far as Turkmengas which is part of the Asian region.

As the petrochemicals, oil and gas, and power generation industries continue to grow in the Middle East region, LISEGA Arabia will be there to meet the increasing demand for pipe supports. LISEGA Arabia aims to become the premier pipe supports manufacturer and field services

The first and only pipe supports manufacturerand field services provider in the Kingdom

4746



Dräger is a leading international company in the fields of medical and safety technology. Founded in Lübeck in 1889, Dräger has grown into a worldwide, DAX-listed enterprise in its fifth generation as a family-run business. Our long-term success is predicated on a value-oriented corporate culture with four central strengths: close collaboration with our customers, the expertise of our employees, continuous innova-tion and outstanding quality. “Tech-nology for Life” is our guiding princi-ple. Wherever they are deployed – in clinical settings, industry, mining or emergency services Dräger products protect, support and save lives. The safety division offers its customers complete hazard management solutions with a special focus on personal safety and protecting production facilities. The safety division's current portfolio includes stationary and mobile gas detection

systems, respiratory protection, firefighting equipment, professional diving gear, and alcohol and drug-testing instruments. The medical division's product range covers anesthesia workstations, ventilation equipment for intensive care,

emergency and mobile ventilation units, warming therapy equipment for infants, patient monitoring equip-ment, IT solutions and gas manage-ment systems. Dräger has about 13.500 employees worldwide and is present in over 190 countries around the globe. The Group maintains sales and service organizations in over 40 countries. Its development and production facilities are based in Germany, Great Britain, Sweden, South Africa, the USA, Brazil, the Czech Republic and China.

Safety division

Dräger´s safety division develops, produces and markets products, system solutions and services for personal protection, gas detection technology and integrated hazard management. Its customers come from industry, mining and public sectors such as fire departments, police and disaster protection. The portfolio includes stationary and mobile gas detection systems, personal protective equipment, professional diving systems, alcohol and drug testing devices, a varied

range of training and services and also projects such as entire fire training systems.

Industry performance

Demand for safety technology was robust in 2013. Chinese industrial production rose significantly in the third quarter, increasing demand for safety technology. The US economy was on the path to recoveryfollowing the financial crisis and grew moderately in 2013. The safety sector benefited from new oil and gas production methods. Thanks to the exploitation of new energy reserves, daily oil and gas production in the US continuously increased over the course of the year, even exceeding that of the world’s largest producer, Russia, in the second quarter for the first time, according to the US Energy Information Administration (EIA). In Southern Europe, demand for safety technology products fell due to the weak economy. Demand increased slightly in Latin America andcontinued increasing rapidly in the Middle East.

Future situation of the safety technology industry

In 2014, we expect slightly positive development in safety technology markets despite of weak global economic development and weaker growth in emerging markets than in prior years. In North America, we believe that demand for safety technology products will be high in the current fiscal year. The recovering US economy, coupled with the increasing independence from energy imports, will fuel strong growth momentum. In emerging markets, we expect investment in safety technology to continue to grow in view of the rising healthcare and safety requirements in these countries. We expect demand for our products in Europe to fall by a small

margin. In North and Central Europe, we anticipate growth to bemoderate the German and UKeconomies are likely to experience stronger growth than in 2013, for example while demand in South Europe is expected to be sluggish. In view of the major projects planned in oil and gas production and in the chemical industry, we expect growth to be moderate in the safety technol-ogy market in the Middle East.

Drägerwerk AG & Co.KGaA / Other companies

The business performance of Dräger-werk AG & Co. KGaA and other companies is mainly shaped by the performance of Drägerwerk AG & Co. KGaA which fulfills the core tasks of the Company as well as providing services to other Group companies. This includes the services provided to the Company and the Group by the Legal, Tax, Insurance, Treasury, Corporate Communica-tions, Investor Relations, Financial Control and Accounting depart-ments, as well as the Corporate IT, Human Ressources, Internal Audit and Basic Research departments.

The role of gasdetection systems

A gas detection system is not simply a handful of gas detectors spread across an industrial plant. The choice of detection technology, quantity of detectors and routine service and maintenance of entire gas detection system are all important. However, the real challenge is to identify the possible migration path of any gas release based on a variety of factors wind direction, ambient tempera-tures, terrain, process pressures etc, which establishes the correct location of gas detectors. It is not practical to saturate an industrial plant with gas detectors, nor is it sensible to install only a single gas detector in a large

area. There must be compromise between cost and risk reduction. There are two main types of gasdetectors: a point gas detector which monitors the immediate vicinity of the gas detectors, or an open path gas detector which monitors a much larger area between two points. Each type of gas detectors has its own strengths and weaknesses. It is also important to choose the correctmeasuring technology as some gas detectors may be poisoned by other chemical in use, or be susceptible due to humidity or give invalid reading due to cross sensitivities. In allapplications it is important to avoid spurious gas alarms.

Draeger Saudi Arabia Draeger Saudi Arabia

Draeger Saudi Arabia

48


49



Hergenröther: Mr. Randt, a very warm welcome from AHK Saudi Arabia. We have seen you around at multiple Saudi-German business meetings since April 2013. While you are part of the V-LINE GROUP you

are not in the market to acquire new customers for spare parts supply services, are you?

Randt: First of all I would like to thank you, Mr. Hergenröther, as well

as the members of the German business circles for indeed making me feel very welcome in both Riyadh and Jubail. You are absolutely right,I am not in the spare parts business as such. Over the years, many of

V-LineV-Line

V-LINE’s customers have come up with questions regarding theirMaintenance, Repair and Operations that do not fall into the core scope of a company focused on fast andseamless supply of cross-border MRO. That’s why we have created the joint venture MRO Connection Middle East where we focus on achieving deep insight into our customers decisions on “WHAT MRO to buy?” as opposed to the V-LINE MRO supply models for “HOW to buy MRO?”

Hergenröther: That makes sense. What do you expect from the invest-ment into this new venture in Jubail?

Randt: Our clients are facing more and more challenges that affect both them and V-LINE’s supply processes. That’s why we partnered with the MRO Connection from the USA who have been successfully delivering turn-key solutions to take on those challenges.

Hergenröther: What are these solutions and what are the challenges you are referring to?

Randt: All of these solutions revolve around the three questions: What, when and how many spare parts should I procure? Not being able to answer these questions can create

very painful challenges. Worldwide more and more data is collected in ERP and EAM systems, such as SAP, Oracle or IBM Maximo. This is great, but to make sense of this data has become very difficult. Both because the creation of meaningful reports itself is difficult and let’s face it: A lot of the data quality is very bad. The root causes are to be found within the people, the processes and the technology in place.

Hergenröther: How are you able to resolve these problems and how does this fit together with V-LINE’s existing business?

Randt: At MRO Connection Middle East we make sure to take all three factors into account. We are able to

assess the skillsets of employees, the adequacy and logic of the processes and the capability of a client’s technology to support the first two. Tailored to the clients’ needs we are then providing on-the-job training and online learning modules, redefine processes and provide technology for MRO-specific tasks, for example Inventory Optimization and asset management. This very hands-on approach is harmonized with the more academic manage-ment trainings we have been conducting with our partner, the Deutsche Management AkademieNiedersachsen. Celebrating 35 years of business in Saudi Arabia at the end of this year, we embraceSaudization by localizing global know-how and hope to keepbuilding long-term and mutually beneficial business relationships.

Hergenröther: Good luck with your project here in Saudi Arabia and the wider GCC region and thank you for the interview, Mr. Randt.

Local Focus onMRO with Global Know-how

MRO Connection™ Middle East information-drivensolutions as add-on to V-LINE’s proven MRO supplyservices. Andreas Hergenröther, Delegate of German Industry and Commerce for Saudi Arabia and Yemen indiscussion with Arne Randt, Head of MRO TechnologySolutions at MRO Connection Middle East.

IBE IBE

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The German company IBE- Engineer-ing Bulander & Esper Inc. was founded in 1996 by the two owners Wolfgang M. Bulander and Thomas Esper.

Mr. Bulander is Process Engineer and worked for mayor column internals manufacturer Raschig, Norton and Koch in the sales, marketing, design and process departments.

Mr. Esper is Chemical Engineerand worked for Koch in theprocess engineering and diagnosticdepartments.

IBE had cooperation with Sulzer, Glitsch, Saint-Gobain Norpro and Baretti for sales and marketing of column internals. Our detailed know how and experience in design, hydraulic calculation, simulation and troubleshooting of worldwide used distillation trays, random and structured packings and other related column internals is used in process diagnostic and troubleshoot-ing of distillation columns, reactors and pipes with our online gamma ray service. This service is available 365 days with a mobilization time of 12-24 hours in Germany and 3-4 days in Europe and Middle East. Our customers are refineries, petrochemi-cal and chemical plants in Europe. IBE is SCC certified since 2007.


The main advantage of our service is the execution of the measurements during the running process. With our gamma ray scans we measure a density profile of the vesselheight and over the diameter.This enables us the monitoringof the process and define the exact location of problems inside the vessel. The technique is used to identify the reason for increased pressure drop andreduced separa-tion efficiency in distillation columns caused by damage of internals,corrosion of internals, coke orpolymerization formation andflooding.

The scans deliver immediately a complete picture of the mechanical and fluid dynamic situation of the column internals. At trayed columns we detect froth heights on the active area of the trays, liquid entrainment, flooding, weeping, foaming and liquid levels in downcomers. The results at structured and random packed columns and reactors are distribution quality of liquid and vapour in packings and catalyst beds, liquid levels on distributors and chimney trays.

With our calculation programs we are able to perform hydraulic

calculations of column internals and thermodynamic process simulation of columns and their auxiliaries. With the combination of the gamma ray scans, the hydraulic calculations and the process simulation we are able to identify nearly all reasons for column malfunction. After interpretation of the scan results the customer receives useful proposals for a problem solution, so column shut downs and preparation for repair are easier to plan, less time consuming and more effective.

IBE can also provide engineering studies for revamping anddebottlenecking of columns.

Process diagnostic with gammarays for the process industries

IBE-Engineering Bulander & Esper Inc.presents itself for the Saudi Arabian Market

Contact Addresses:

Headquarter:IBE Engineering Bulander & Esper Inc.D-64673 Zwingenberg, Im Lucken 14

Wolfgang M. BulanderTel.: +49-62 51-78 81 36

Thomas EsperTel.: +49-62 51-78 81 06Facsimile: +49-62 51-78 81 34Mail: [email protected]

Branch Office:IBE Engineering Bulander & Esper Inc.D-67269 Grünstadt, Bahnhofstraße 16

Thomas EsperTel.: +49-63 59-94 93 90Facsimile: +49-63 59-94 93 91Mail: info@ ibe-engineering.com

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The only show in the world to provide a complete overview of the latest information and digitization technolo-gies Hannover. With “d!conomy” as its lead theme, China as Partner Country, and a solid lineup of international conferences and displays on all the defining trends in IT and digitization, CeBIT is poised for a strong start to its 2015 season this coming March. Held in Hannover, Germany, CeBIT is the world’s leading showcase for the digital economy. It is a sharply business-focused trade fair and confer-ence that explores today’s defining market trends of big data, cloud computing, mobility, social media and security in unparalleled breadth and depth. d!conomy as lead theme CeBIT 2015 will center around the rapidly growing influence of IT across all areas of business and society and, associated with this, the role of IT as a key driver of innovation. “In partnership with us,

BAU, the World's Leading Trade Fair for Architecture, Materials and Systems, is the biggest and mostimportant event in the sector. The next BAU takes place from January 19 to 24, 2015 at the Messe München exhibition center. Around 2,000 exhibitors from more than 40 countries and over 235,000 visitors from all around the world are expected to attend. On display at BAU on 180,000 square meters of exhibition space for years all the available space has been fully booked are architectural solutions, materials and systems for commercial and residential construction and interiors, for both new build and renovation and modernization. Every two years this event brings together market leaders from the sector toparticipate in a unique international display of competence spanning all theconstruction trades. BAU is also the world’s largest trade fair for architects

Floor coverings play a central role in interior design, so it is not surprising that DOMOTEX the world's leading trade show for floor coverings is an important date in the business diary of countless professionals. No other show will give you such a comprehensive overview of the market or so many opportunities to extend your range of contacts and cultivate existing connec-tions. Whether you are looking for new suppliers, searching for specific products or hoping to learn more about your special area of expertise at the many themed presentations, the world's leading trade fair for floor coverings is an absolute "must" for your diary. Floor-laying professionals will also be well catered for, with new areas of interest and current topics highlighted and explored in a you can find further detailed informationpractical work setting. In line with the DOMOTEX claim "The World of Flooring" - every product group and

HANNOVER MESSE 2015 will showcase the great innovative power that all sectors of industry can unleash if suppliers, manufacturers and custom-ers join together to form networks of communication and collaboration with the common goal of optimizing products and solutions.”The techno-logical advances that can flow from networking will be made real and tangible at HANNOVER MESSE this coming April. Visitors to the fair will witness digitally networked produc-tion plants, ingenious new production processes, and next-generation indus-trial robots live in action. The visitors come to Hannover to explore the future of industry and invest in the latest factory and energy technology on show by some 5,000 exhibitors. Like In 2013, when the Kingdom of Saudi Arabia was represented through high-profile participation, with a pavilion covering 1000 square meters, a Saudi Pavilion is planned again for 2015.

the organizers of CeBIT, the IT industry has chosen ‘d!conomy’ as the lead theme for the 2015 showcase,” Oliver Frese, a member of the Managing Board of Deutsche Messe AG, said. “Digitization is everywhere and is shaping ever more dimensions of working and social life. IT istransforming existing business models while at the same time giving rise to completely new ones. Information technology now has the ability to rapidly disrupt entire industries. d!conomy encapsulates this develop-ment perfectly.” Over the past few years, the game-changing IT industry trends of big data, cloud computing, mobility, social media and security had developed rapidly and were now converging to have a profound combined impact on both the business world and society generally. “By virtue of convergence, fundamentalinnovations wield great transformative

power that has already brought us to the dawn of a new, digital era ofindustry,” he said. China, the official Partner Country for CeBIT 2015, has undergone a rapid process of transfor-mation in recent years, particularly in the IT industry. The Kingdom of Saudi Arabia will be represented for the first time in the Exhibition through aMr. Adel Moosa Arab Sea Information Systems Riyadh, Saudi Arabia.

AHK is the official representative of CEBIT. For further information, please contact [email protected],Tel.: +966 11 4050201

The world’s leading event for the digital world16 – 20 March 2015 - Hanover

The world’s leading trade fair for architecture,materials and systems 19 - 24 January 2015 - Munich

The leading trade fair for floor coverings17 - 20 January 2015 - Hanover

The world’s leading trade fair for industrial technology 13 – 17 Apr 2015 - Hanover

“The trend towards digitization that is sweeping the economy is a powerful force for transformation in the world’s manufacturing industries,” said Dr. Jochen Köckler, a member of the Managing Board of Deutsche Messe, the organizer of HANNOVER MESSE. “Factories and energy systems are digitally networked, product develop-ment and release cycles are getting shorter, and new business models are popping up at an ever faster pace. In this environment, manufacturers who turn their backs on collaboration and try to do everything in-house will ultimately lose out. Increasingly, the

companies that get their products to market the quickest and hence stay ahead of the competition will be those which are able to form close networks with all stakeholders in theirproduction processes. The lead theme chosen for HANNOVER MESSE 2015 – “Integrated Industry – Join the Network!” reflects this trend and will help create forward momentum

AHK is the official representative ofBrau Beviale. For furtherinformation, please contact: [email protected],Tel.: +966 11 4050201

and construction engineers, attracting more than 60,000 design professionals. The exhibits at the fair are organized according to building material and also product and theme areas. The many attractive events in the supporting program, among them high caliber forums with experts from all over the world, round off this industry showcase. Mr. Fahad Al-Hammadi, Chairman of the National Construction Committee visited BAU 2013 and signed an MOU between the National Committee for Contractors at theCouncil of Saudi Chambers (NCC) and

the Federation of the GermanConstruction Industry, in order to foster closer relations between the two organizations as well as to establish measures to facilitate future coopera-tion in the fields of engineering and construction a similar delegation trip is planned again for 2015.

AHK is the official representativeof Bau. For further information,please contact: [email protected], Tel.: +966 11 4050201

trend will be showcased in detail at DOMOTEX in Hannover. Hand-made and machine-made carpets, textile and resilient floor coverings, parquet and laminates take pride of place, however equipment and products for floor laying, maintenance and applications technology will also feature in this impressive array. Accordingly, the trade visitors come from the wholesale/retail trade, the field of architecture, interior design and the skilled trades. They obtain a complete market overview so that they can compare suppliers, products, terms and prices, as well as gain insights into the latest trends and developments. A broad range of special events, trade association meetings and conferences offers you the chance to learn more about the key issues affecting theindustry today. Here you can compare notes, benefit from expert knowhow and strengthen your position in your everyday business dealings.

AHK is the official representativeof Domotex. For furtherinformation, please contact: [email protected],Tel.: +966 11 4050201

Trade FairsTrade Fairs

54

Trade Fairs Trade Fairs

55AHK Saudi Arabia - www.saudiarabien.ahk.de

Opti – The International Trade show for Optics & Design (09 - 11 January 2015, Munich)http://www.opti.de/en/home/

Green Week Berlin - The International exhibition for the food, agricultural and horticultural industries (16-25 Jan 2015, Berlin) http://www.gruenewoche.de/en/

Spielwarenmesse - The International trade Fair for the toy sector (29 Jan - 03 Feb 2015 Nuremberg) http://www.spielwarenmesse.de/

BIOFACH - World's leading Trade Fair for Organic Food (11 - 14 Feb2015,Nuremberg) http://www.biofach.de/en/

ITB-Berlin - The World’s leading TravelTrade show (04-08 March 2015, Berlin)http://www.itb-berlin.com/ITBBerlin/

Gulf Industry Fair - The Regions Premiere Industrial Event in the GCC 03-05 Feb 2015http://www.gulfindustryfair.com/index.php/en/

EC-European Coating - The InternationalTrade Fair for coatings and paint Industry (21-23 April, Nuremberg) h t t p : / / w w w. e u ro p e a n - c o a t i n g s -show.com/en/

Conhit - The International Trade Fair for connecting healthcare IT (14-16 February 2015, Berlin)http://www.conhit.de/en/

BAU - Worlds leading Trade Fair forArchitecture, Materials and Systems (19-24 Jan 2015, Munich)www.bau-muenchen.com

Wasser Berlin – The International Trade Fair & congress for water Management (24-27 March 2015, Berlin) http://www.wasser-berlin.de/en/

ISPO - International Trade fair for segments of Outdoor, Ski, Action,Performance Sports, Textrends, Health & Fitness and Sourcing (05-08 Feb 2015, Munich)http://munich.ispo.com/en/

INHORGENTA MUNICH - The Interna-tional Trade Fair for Jewelry, Timepieces and Lifestyle (20-23 February 2015, Munich)www.inhorgenta.com

Cebit - The World’s leading Event for the digital world (16 – 20 March 2015, Hanover)http://www.cebit.de/home

Transport logistic - The International Trade Fair for transport and logistics(05-08 Mai 2015, Munich) http://www.transportlogistic.de/

DOMOTEX - The leading Trade Fair for Floor Coverings (17 - 20 January 2015Hanover, Germany)http://www.domotex.de/home

Fruit Logistica - The International Trade Fair for fresh produce industry services and technical solutions (04-06 February 2015)http://www.fruitlogistica.de/en/

IWA - The exhibition for hunting guns, shooting sports and outdoor equipment(06-09 March 2015, Nuremberg)http://www.iwa.info/en/

Hannover Messe - The World’s mostimportant industry show (13 – 17 Apr 2015, Hanover)http://www.hannovermesse.de/home

FOR FURTHER INFORMATION ON THESE FAIRS,PLEASE CONTACT THE TRADE FAIR DEPARTMENT OF AHK

TEL.: +966 11 4050201 OR [email protected]

VIVANESS - International Trade Fair for Natural Personal Care (11 - 14 Feb 2015, Nuremberg) www.vivaness.de/en/

TRADE FAIRS REPRESENTED BY AHK Saudi Arabia - GESALO

AHK Services AHK Services

Small and medium-sized companies are particularly supported by experienced partners to enter foreign markets. The AHK’s Service Brand DEinternational is present in all 120 offices of the German Chamber Network abroad. According to the services of DEinterantional, AHK Saudi Arabia offers German companies services to assist them in the market entry and Saudi companies to get in touch with German businessmen. Important sectors like health care, infrastructure, construc-tion, petrochemicals, metallurgical mills and plants, food industry as well as energy related topics are covered by one of our employees, who are specialized inthese fields.

Market Entry1. Individual Market AdviceThe individual market advice is our most successful service. In a close dialogue with German companies and on the basis of the documents and product samples they provide, we identify business and product specific advantages on the Saudi market and analyze their market opportunities.

2. Business Partner SearchWithin the context of the business partner search we take on the search for the right and appropriate business partners.

3. Address ResearchThe AHK Saudi Arabia offers a verified research of sectoral and address informa-tion to simplify the establishment of contacts with Saudi companies.

4. Direct Mailing ServicesWe offer you individual support in the search for interested business partners and we will take care of establishing initial contacts.

5. Business-TripsAHK Saudi Arabia offers German compa-nies the possibility to take part in business trips of different industrial sectors to Saudi Arabia. During 3 to 4 days stay in Saudi Arabia the aim of these business trips is to give a first impression of the country and the market and to make first contact with Saudi businessmen. The main focus of an AHK-business trip lies on business to business meetings (B2B). Saudi businessmen who are interested in cooperation with German companies are cordially invited to contact us.

6. Catalogue Show - ExhibitionAHK Saudi Arabia and Yemen presents German companies in the most important trade- and industrial centers in Saudi Arabia. Saudi companies have the unique opportunity to see a wide range of high

quality products “Made in Germany” at one spot. The Catalogue Show is usually combined with the German breakfast. Traditionally high ranking representatives of Saudi and German economy attend the breakfast and enjoy Germany’s delicious food and beverages.

Market InformationKnowledge about the Saudi Arabian market and characteristics of its society and culture are essential for a successful market entry. Regarding this, AHK Saudi Arabia offers Quick Market Checks and Market Surveys.

In cooperation with our partner Germany Trade & Invest, we also help Saudicompanies, who are interested in business in Germany.

1. Legal InformationIn order to enter a market successfully, the legal aspects should be considered carefully. For this reason it is our pleasure to provide German companies with the needed legal services in diverse business-related aspects reaching from customs

Services of AHK Saudi Arabia

Legal Informationand Support

56 57



and taxes to investment, import and export regulation, etc.

In addition, we offer extrajudicial media-tion and offer our help when contacts to public authorities and/or law firms are required.

2. Health Treatment in GermanyAHK Saudi Arabia assists Saudi Arabian patients who wish to make use of health treatment in Germany.

3. Debt CollectionLong experiences with debt collection show that extrajudicial proceedings offer faster and more promising solutions than court proceedings by civil law. AHK Saudi Arabia's experts with long termexperience in the country can alsohelp you to dissolve and avoid misunder-standings due to different perceptions of trade and business caused by cultural differences or customs. Sustainable damage of long year businesspartnerships can easily be avoidedby the debt collection through AHKSaudi Arabia.

4. MediationAHK Saudi Arabia acts as a mediator in cases of commercial disputes between the German and the Saudi business partner.

Our objective is to solve disputes without harming the long term business relations.

5. Visa Service

To help Saudi companies and business-men with the visa application process we offer to provide exhibitors and visitors totrade fairs in Germany with a letter of recommendation to the German consulate/embassy. AHK Saudi Arabia assists German companies and business-men in visa issues. We support business travelers who stay temporarily in the Kingdom in offering to act as the sponsor during their stay. AHK Saudi Arabia requests the so called E-Number at the Ministry of Foreign Affairs and is the responsible institution during the time of the visit.

6. Translation Services

We offer translations of letters, documents, company profiles etc. in the following languages:

• German <> Arabic • German <> English

We also offer interpreting-servicesGerman <> Arabic during AHK-Events and delegations.

Trade Fair ServicesAHK Saudi Arabia is the officialrepresentative of the Deutsche Messe AG, Messe Munich, Messe Berlin GmbH, and Spielwarenmesse eG in our region. Exclusively for Saudi and Yemeni clients we offer a wide range of services as we take care of their preparation for trade fairparticipation as an exhibitor or visitor. These services includes selecting the suitable trade fair, according to their company profile, preparation of the application form, booth rental, etc. for exhibitors. For visitors, we are providing the admission ticket, issuing the recom-mendation letter for the visa process, providing info on visa application, flight and hotel booking, etc.

For further information to the services of AHK Saudi Arabia, please contact:

Your service provider for sustainable businessdevelopment with one of the world’s largest economies

German-Saudi Arabian LiaisonOffice for Economic Affairs (GESALO)P.O. Box 61695, Riyadh 11575,Kingdom of Saudi ArabiaTel.: 00966 11 4050201Fax: 00966 11 4031232, Email: [email protected]

AHK Saudi ArabiaAHK Saudi Arabia

59

Andreas HergenrötherDelegate of the German Economyfor Saudi Arabia, Bahrain and Yemen

[email protected].: + 966 (0) 11 405 02 01

Management Legal Affairs

Trade Fairs

Al-Ameen Al-DalaliHead of Trade Fairand Export Promotion

[email protected].: +966 (0) 11 405 02 01 Ext. 109

Asif Iqbal AnsariTrade Fair Officer / Trade FairCoordinator for Visitors

[email protected].: + 966 (0) 11 405 02 01 Ext. 112

Management

Mohammed FaleelHead of Business Promotion &Business to Business Affairs


Tareq QamhanIntermediation of Health Services

[email protected].: +966 (0) 13 3472473 Ext. 1526

DEinternational


Omar Hassan HamzaAssistant Delegate& Head of Legal Affairs,


Christian EngelsDeputy Delegate of the German Economyfor Saudi Arabia, Bahrain and YemenLegal Affairs & Public Relations

[email protected] Tel.: +966 (0) 11 405 02 01 Ext. 107


Your contact persons at AHK Saudi Arabia

Jan Lutz MuellerDEinternational Consultant

[email protected].: +966 (0) 13 3472473 Ext. 1525

Philipos TedrosDEinternational Consultant

[email protected]: +966 (0) 11 405 02 01 Ext.103

Anton BondarewDEinternational Consultant

[email protected]: +966 (0) 11 405 02 01 Ext.118

Raffael MiethDEinternational Consultant


Stefan WeilerDeputy Delegate of the German Economyfor Saudi Arabia, Bahrain and YemenDEinternational


58


Mohammed AkbarIT System Administration


Dani YussekPublic Relations

[email protected]: +966(0) 11 405 02 01 Ext.115

Your contact persons at AHK Saudi ArabiaPublic Relations & IT

At your Service

Christian EngelsHead of Public Relations


Farook HameedAddress Research / Front Desk


Mohammed Riyas GulcanMessenger


Accountancy

Mohammed KhusroAccountancy


Mushtaq AhmedAdministration


Faisal NalpurakkalAdministration / Front Desk


Delegation der Deutschen Wirtschaft für Saudi-Arabien undJemen (AHK Saudi-Arabien)German-Saudi Arabian Liaison Office for Economic Affairs(AHK Saudi Arabia)

Mohammed Aminul IslamFacilities

[email protected].: +966 (0) 11 405 02 01

Futuro Tower, 4th Floor, Al Ma'ather StreetP.O.Box 61695, Riyadh 11575,Königreich Saudi-Arabien / Kingdom of Saudi ArabiaPhone : 00966-11-4050201 - Fax : 00966-11-4031232Mail: [email protected]: http://saudiarabien.ahk.de/

FAWAZ A. BAGHDADIADVERTISING AGENCY

P.O. Box 7301, Riyadh 11462, Kingdom of Saudi ArabiaTel.: +966 11 270 4102 - Fax: +966 11 270 4103

[email protected]

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The Petrochemical Industry in Saudi Arabia

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