Pursuing Growth Through Strategic Partnerships
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PURSUING GROWTH THROUGH STRATEGIC PARTNERSHIPS The GCC chemical industry is emerging from an era of low-cost feedstock prices and a focus on commodity chemicals, and transitioning into a new modus operandi. To remain competitive, companies in the region must shift their focus towards gaining greater technology know-how and access to key markets. However, in this interconnected and increasingly complex business environment, forging strategic partnerships will be key for capturing profitable growth. In line with the imperative for collaboration, the 2018 GPCA Annual Report centers on the theme of pursuing growth through formulating strategic partnerships. The report further highlights GPCA’s efforts to advance the industry’s agenda by facilitating greater collaboration among key stakeholders and effectively representing its members’ interests on issues of strategic importance at both global and regional level. CONTENTS Chairman’s foreword 5 Message from the Secretary General 6 About GPCA 8 Board of Directors 9 Membership 10 Year in review State of the GCC chemical industry 12 GPCA: Year in review 16 Communications 33 Looking forward 34 The GPCA secretariat team 35 GPCA members 36 GPCA ANNUAL REPORT 2018 3 Chairman’s foreword Yousef Al-Benyan Chairman, GPCA and Vice Chairman and CEO, SABIC I am delighted to present the 2018 GPCA Annual Report which business models. We repeatedly addressed this challenge across provides a summary of the association’s strategic activities and our conferences and events that aimed to stimulate discussion highlights the industry’s performance over the past year. Looking and foster collaboration among the government and global and back on the last 12 months, for the chemical industry in the regional industry leaders. As we continue to drive the chemical Arabian Gulf region and across the globe, this was a year of industry’s innovation efforts and encourage greater investment change that saw us go through tremendous challenges, but it in technology and innovation management, our IP Awareness was also a year of opportunity and time to take bold actions. The workshop series entered its 4th edition taking place for the first industry is faced with a choice: to fundamentally transform or risk time in Kuwait. being left behind. As we endeavor on our transformational journey towards value creation and growth, GPCA will continue to play a The transformation sweeping across the industry is forcing key role in facilitating an effective platform for knowledge sharing global and GCC chemical players to transform by focusing on and fostering strategic partnerships that would enable the industry their competitiveness, value creation and taking effective growth to move closer towards achieving its common goals. measures. To provide a direction for the future in this increasingly uncertain business environment, GPCA’s annual networking In line with recent sustainability trends spreading across the events focused on the role of innovation as a growth imperative region and the world, GPCA, through its strategic advocacy and the need for sustainable plastic innovation to address today’s efforts and networking events, has been steering the dialogue environmental challenges. Again, we touched upon collaboration towards circular economy, greater recycling efforts and effective and how to capitalize on digitalization to improve our supply chain government-industry partnerships. We extended our cooperation performance. For the first time in Oman, we explored the new further with regulators in the area of industry standards and frontiers and opportunities for the agri-nutrients industry which provided a platform for greater government-industry collaboration attracted a record number of delegates from leading chemical in chemical management and hazardous waste. Our efforts to organizations in the GCC and the world. raise awareness and recognize excellence in Responsible Care, th the industry’s flagship EHS&S program and license to operate, The topic of executing transformation was central to the 13 culminated in organizing several networking events across the Annual GPCA Forum, with speakers calling on the industry to take region designed to share best practices and advance health and strategic actions in order to stay relevant in this highly competitive safety standards in the chemical industry in the GCC and globally. global business environment. We further urged our colleagues and peers to address growth through collaboration by offering the right Through our community outreach program, Waste Free value proposition to customers and partners abroad. And finally, Environment, we continued to promote the role of plastics in we emphasized on the importance of partnering with technology providing sustainable solutions for today’s challenges, and the providers to improve our competitiveness, create new growth for need for fostering responsible attitudes among the public, starting our businesses and address the rapidly changing needs of from the youngest members of our society. Our future tomorrow end-user markets. is in the hands of the young generation in this region; we are, therefore, proud to have seen our efforts to engage with students The road ahead will be long and full of unique challenges, but I and academia from the GCC pay off, as the Leaders of Tomorrow am confident that we are on the right path to lead the industry program continues to grow in numbers and participation with into a more competitive future. For its part, GPCA remains fully each year. committed to fulfilling its mandate and supporting the industry in its efforts towards realizing greater value creation through The rise of trade protectionism is impacting not just our supply formulating long term strategic partnerships in the GCC region chains but the supply chains of our customers, forcing chemical and abroad. players to rethink and transform their global strategies and GPCA ANNUAL REPORT 2018 5 Message from the Secretary Dr. Abdulwahab Al-Sadoun General Secretary General, GPCA As we celebrate yet another succesful year, I would like to take a The GPCA Secretariat team expanded in 2018 into new and strategic moment to highlight some of our achievements and share our plans roles within the Thought Leadership, Networking and Marketing and for the year ahead. At GPCA, our motto is “Working for Our Members, Communications functions in line with our vision to grow and reach through Our Members” as we see our collaborative efforts bear new heights. We also launched and developed fully in house a new bigger and better fruits – from advocating for effective standards and GPCA corporate website, which highlights our three pillars and annual regulations, to taking our networking events into new locations in programs and initiatives. the region, and seeing key initiatives and programs grow, 2018 was another year of great achievements and a testament to the dedication Membership of our Board, Working Committees and the GPCA Secretariat, and the support of our stakeholders and long term partners. In 2018 GPCA was joined by 39 new associated members. As we continuously aspire to grow and effectively represent the common In continuation of our achievements in 2018, I am confident that interests of our members at a global and regional level, GPCA remains 2019 will bring renewed opportunities for success and growth in fully committed to providing value for our members through long the global and regional chemical industry. Opportunities will remain term and effective partnerships. In this regard, we launched a new high to expand the Arabian Gulf industry’s global position through members portal and mobile application featuring a social wall allowing consolidation, overseas inorganic growth, continued products portfolio members to share their company’s regular updates, and a messaging diversification and developing local technological capabilities. With this, tool designed to enhance the networking aspect of the platform. The I am positive that 2019 will be a pivotal year in the industry's journey portal also provides direct access to the GPCA members directory, towards prominence as a global chemical hub. petrochemicals database and GPCA publications. Administration In 2018, our Members Outreach Program gained momentum, with two roundtable meetings taking place and attended by senior executives Our Annual General Assembly Meeting took place in March 2018, from GPCA member companies in Saudi Arabia and Oman. The hosting the GPCA Board elections. Yousef Al-Benyan, Vice Chairman first meeting was hosted by SABIC in Jubail in December 2017 and and CEO, SABIC, was re-elected as GPCA Chairman for a new three- attended by senior management of SABIC’s subsidiaries. The second year term, while Dr. Abdulrahman Jawahery, President, GPIC, was roundtable meeting was conducted in Muscat and attended by senior elected as Vice Chairman, and Dr. Mohammed Al Mulla, Managing executives from Orpic, Salalah Methanol, Oman Oil, OMIFCO, and Director and CEO, QAPCO, was re-elected as Treasurer, both of whom Duqm Refinery. Moving forward, GPCA will be looking to conduct more sit on GPCA’s Executive Committee. outreach activities to exchange thoughts on the association’s programs and activities and ensure alignment and value creation for member Among the regional industry leaders joining the GPCA Board this companies. year were Said M. Bajodah, CEO, Saudi Chevron Philips Company, and Hazeem Al Suwaidi, CEO, ADNOC Fertilizers. Mr. Bajodah was GPCA continues to play an active role in shaping