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Saudi Basic Innovation Polycarbonate Business Strong Growth

Time: 2018-10-29

Saudi Basic Innovation Polycarbonate Business Strong Growth

Saudi Basic Innovative Plastics (Sabic IP) expects to maintain a good track record in the North American and global polycarbonate markets.

Bill Russell, head of the company's base resin business, said: "The growth rate in the past five years is slightly lower than the highest level in history. But we believe that there will be strong growth in the future."

“I think the industry growth rate in some regions will be faster than GDP, and the growth rate in North America will be the same as GDP growth. If the housing market recovers, the growth rate in North America may further accelerate.”

Headquartered in Pittsfield, Massachusetts, Saudi Arabia's Innovative Plastics is the world's leading producer of polycarbonate and other specialty plastics. Its parent company is Saudi Basic Industries, based in Riyadh, Saudi Arabia.

Globally, like many other material producers, the Saudi Basic Innovative Plastics development program focuses on Asia. Last month, it announced a major expansion plan for a joint venture with state-owned Sinopec. The highlight of the cooperation will include the construction of a new polycarbonate production plant in Tianjin with an annual production capacity of nearly 260,000 tons.

The new polycarbonate plant is expected to go into production, Russell said. He entered GE Plastics, the predecessor of Saudi Basic Innovative Plastics in 1997, and worked for GE Plastics' parent company General Electric for 10 years.He added: "China has set a target of 7% overall economic growth in the 12th Five-Year Plan. At present, some large OEMs have shown strong growth in the 'Made in China' business. At the same time, China is also developing vigorously. Domestic infrastructure."

In North America, Russell said polycarbonate producers were affected by the recession and the housing market downturn. But the recovery in the North American auto industry has largely offset the growth in the region, and the automotive industry is increasingly demanding polycarbonate and other engineering resins.

Saudi Basic Innovative Plastics' major polycarbonate manufacturing facilities in North America are located in Mount Vernon, Indiana, USA, and Burkville, Alabama, USA, and are currently operating well.

The rebound in styrene monomer production in North America, coupled with restrictions on the production of benzene feedstocks, also has an impact on the manufacturer's polycarbonate/ABS mix production capacity.

Russell said the transfer of the Sabic IP's Mount Vernon plant was limited at the beginning of the year due to the flooding of the Ohio River. Although the plant has slowed down in production for some time, it has not affected its final market due to increased production at other plants. He said: "This is one of the advantages of being a multinational supplier."