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Creating Possibilities in the Polymers Industry

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Creating Possibilities in the Polymers Industry / CREATING POSSIBILITIES IN THE POLYMERS INDUSTRY CREATING POSSIBILITIES IN THE POLYMERS INDUSTRY IDEAL location to serve the plastics consumption markets in the Middle East and Africa Volume rebates on raw materials available within the Park Most competitive utility rates in the UAE Shorter transits and lower order batch sizes to reduce supply chain costs Essential products and services in polymers value chain within the Park / KIZAD POLYMERS PARK KIZAD Polymers Park is a custom-built cluster for the global plastic and polymers industry looking to take advantage of proximity to raw materials and a reliable supply of utilities at competitive rates. KIZAD Polymers Park, co-designed and developed with technical experts and leading regional entities in the polymers industry, offers easy and preferential access to raw materials, highly developed infrastructure, global connectivity and favourable investment policies. 2 CREATING POSSIBILITIES IN THE POLYMERS INDUSTRY Major brands that are already operating out of KIZAD Polymers Park include Songwon (additives and speciality chemicals), Cosmoplast (households, building materials & infrastructure products), Interplast (PVC compounds, packaging, electrical products etc.), Palletco (industrial packaging solutions), and Schmidt Logistics (specialized logistics for dry bulk products) to name a few. KIZAD Polymers Park aims to be a major economic driver in the region, producing 300-400 kilotonnes of multi-use plastic products a year, and creating up to 7,000 new jobs by 2025. 3 CREATING POSSIBILITIES IN THE POLYMERS INDUSTRY United Arab Emirates Abu Dhabi #1 #1 IN THE MENA REGION IN THE UNITED ARAB EMIRATES • Fastest Growing Polymers • Highest Contributor of the UAE’s GDP 1 Industry in the GCC • Highest Oil & Gas Reserves in the UAE 2 • Global Competitive Index • Most Competitive Utility Rates in the UAE 3 • Ease of Doing Business • Most Developed Technology Base • Access to Electricity 3 in the Middle East 4 1 Gulf Petro Chemicals Association 2 World Economic Forum 2019 3 World Bank 2019 4 McKinsey 2019 4 CREATING POSSIBILITIES IN THE POLYMERS INDUSTRY WELCOME TO KIZAD DEVELOPING ONE OF THE LARGEST INDUSTRIAL AND LOGISTICS ECOSYSTEMS IN THE WORLD Khalifa Industrial Zone Abu Dhabi [KIZAD], a subsidiary of Abu Dhabi Ports, is the largest industrial and free trade zone in the MENA region and offers the most competitive business setup solutions and world-class infrastructure facilities in the UAE. Spread over 410 km2, KIZAD is home to over 600 companies across industries such as Food Processing, Polymers, Metals, Automotive, Pharmaceuticals, Logistics, Oil & Gas, among others. Setting up at KIZAD enables businesses to benefit from the strategic location, faster access to markets, low set up and operational costs, flexibility in scale of operations and efficient investor support services. IDEAL LOCATION TO SERVE THE MARKETS IN THE MENA REGION Strategically located between Abu Dhabi and Dubai, the two most important economic centres of the region, KIZAD is ideally positioned to serve the key consumption markets in the GCC, Middle East and Africa. 5 CREATING POSSIBILITIES IN THE POLYMERS INDUSTRY / GCC – Rich in Polymer Raw Materials $50.2 $40 34.4 BILLION DOLLARS BILLION DOLLARS MILLION TONS Value of GCC Polymer The Polymer Industry’s Total Forecasted Volume of GCC 2 Industry by 2025 1 Contribution to the Gulf Polymer Industry by 2023 Region’s GDP in 2018 2 278K 55.6K JOBS SUPPORTED DIRECT EMPLOYEES Jobs Supported by Number of Direct Employees the Polymer Industry in the GCC Polymer in the GCC in 2018 2 Industry in 2018 2 1 Goldstein Research 2 GPCA 6 CREATING POSSIBILITIES IN THE POLYMERS INDUSTRY / UAE – A HUB for the POLYMERS sector 2020 2025 200% ADNOC’s Planned Growth in Petrochemical Capacity by 2025 1 15.1 4.1 MILLION TONS MILLION TONS Production Capacity UAE Polymer of Polymers in UAE Output in 2018 2 by 2025 1 1 ADNOC 2 GPCA 7 CREATING POSSIBILITIES IN THE POLYMERS INDUSTRY / BUSINESS ECO SYSTEM AND INFRASTRUCTURE STRATEGIC PARTNERSHIPS DELIVERING VALUE FOR POLYMERS DOWNSTREAM ACTIVITIES KIZAD Polymers Park is the result of strategic collaborations with key players in the industry such as Abu Dhabi Ports and Abu Dhabi National Oil Company (ADNOC), one of the leading energy producers operating across the entire hydrocarbon value chain. The strategic collaboration framework between ADNOC and KIZAD Polymers Park aims to accelerate investment and innovation in the region’s plastics industry while offering companies swift and cost-effective access to polymers. RAW MATERIALS WITHIN THE PARK AND AVAILABLE IN THE REGION Abu Dhabi’s position as the key crude oil producer and petrochemical hub in the region also helps the polymers conversion industry in the UAE. Major raw materials suppliers such as Borouge present in KIZAD offer competitive pricing and better credit terms for investors. Proximity to such strategic players enables faster delivery of materials, smaller order quantity and flexibility in new product development. In addition to the raw materials available in Abu Dhabi, downstream polymer converting units in KIZAD Polymers Park can take advantage of the abundant supply of raw materials by other key providers in the GCC region. RELIABLE AVAILABILITY OF POWER, GAS AND WATER KIZAD Polymers Park has sufficient infrastructure network for all necessary utilities such as power, gas and water, ensuring reliable and efficient supply for all polymers conversion activities. Abu Dhabi offers the most competitive utility rates in the UAE, making it a very cost-efficient location for downstream manufacturing activities. 8 CREATING POSSIBILITIES IN THE POLYMERS INDUSTRY PRODUCTS AND SERVICES IN POLYMERS VALUE CHAIN Abu Dhabi hosts a vibrant polymers ecosystem, including diversified raw materials, production systems, technical support, polymers distribution and logistics. This ecosystem caters to a variety of different polymers segments, including industrial use, such as packaging, construction, and semi-finished products; end-use customers, such as household goods, agriculture and hygiene products; material science, including compounded and composite materials, and 3D Printing. POLYMER-CENTRIC LOGISTICS AND INFRASTRUCTURE World-class container handling facilities at Khalifa Port act as a key enabler for the polymers industry at KIZAD. Facilitating the polymer value-chain, Khalifa Port and KIZAD host over 230,000 m2 of warehouses, which have an annual throughput exceeding of 1.5 million tonnes. Specialised service providers present in KIZAD offer packaging, product handling and intermodal transportation of dry bulk products. They cater to the logistics requirements of dry petrochemical and mineral industries across the region and internationally. KIZAD POLYMERS PARK PACKING PLANT The packing plant in KIZAD Polymers Park has three fully automated ‘Fill, Form, Seal’ – FFS polymer packing lines with a capacity of 2,000 bags/hour and one bulk bag filling line. The overall packing capacity of the plant is more than 700,000 tonnes per year. 9 CREATING POSSIBILITIES IN THE POLYMERS INDUSTRY / Availability of polymer & plastic raw materials in the region UNITED ARAB SAUDI ARABIA KUWAIT OMAN EMIRATES • Ethylene • Propylene • Formaldehyde • Urea • Propylene • Styrene Monomer • Acetic Acid • Ammonia • Butadiene • Ethylene Glycol • Polyesters • Ethylene • Methanol • Polypropylene • Acrylics • Polyethylene • Styrene Monomer • Paraxylene • Methylamines • Polypropylene • Benzene • PET • Polycarbonate • Low Density • Paraxylene • HDPE Polyethylene • Glycols (LDPE) • Olefin • Natural Gas • Industrial Gases 10 CREATING POSSIBILITIES IN THE POLYMERS INDUSTRY ADNOC is proud to collaborate with We anticipate great success in Abu Dhabi, Abu Dhabi Ports and KIZAD to further and we appreciate KIZAD’s support in strengthen and develop the UAE’s conversion helping us set up and connect to its integrated industry. Together, we will work to ensure polymer-centric logistics hub.Our presence in alignment with the Ruwais Derivative & Conversion KIZAD emphasises our determination to strengthen Parks and other industrial parks catering to and expand our offering and ensure our business “different parts of the polymers value chain, “breaks into new markets. Having swift access offering investors a wide choice of options, to key raw materials from within the KIZAD while also building on synergies. We welcome Polymers Park and the ability to ship faster to the competitive commercial environment this market thanks to the world-class infrastructure will create. This partnership is another example available at KIZAD, is a major advantage to of ADNOC’s determination to support the companies such as ours”. diversification of Abu Dhabi’s industrial base as we implement our downstream strategy and ASHISH MALANI associated corporate transformation programs”. CEO, SHRINATH FLEXIPACK ABDULAZIZ ALHAJRI DIRECTOR, ADNOC DOWNSTREAM DIRECTORATE We are glad to contribute in such initiative, in line with Abu Dhabi’s long-term strategy. GCB will enable the development of KIZAD and add value to the polymers ecosystem”. India has an enormous plastic and polymers manufacturing industry and the UAE is one MOHAMMED YOUSIF AL NOWAIS of our top five import markets. The MoU with KIZAD “BOARD MEMBER, GULF COMPOUND and the potential to work with them to increase BLENDING (GCB) our mutual opportunities in new markets is an “excellent strategic move on both our parts”. MEELA JAYADEV PRESIDENT, AIPMA 11 CREATING POSSIBILITIES IN THE POLYMERS INDUSTRY EASY
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