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Mutlaq Al-Morished, CEO of National Industrialization Co.
The demand for petrochemicals increased significantly by 5 to 10%, CNBC Arabia reported, citing National Industrialization Co. (Tasnee) Chief Executive Officer (CEO) Mutlaq Al-Morished.
He expected higher demand to sustain for several years, as no new factories are being built.
Demand rates started to recover as of H2 2020, while prices of some products hit record levels, which boosted profitability.
“Prices dropped later, but it was not a steep decline; as Asia, the US and to some extent Europe witnessed higher demand, while countries in the Middle East and Africa saw robust demand rates,” stated Al-Morished.
Petrochemicals producers, which have fulfilled the optimal cost and price efficiency, will be able to make a market change, as they mainly seek to avoid production disruptions.
When asked about using new technology in the petrochemicals factories, Al-Morished indicated that such a change needs comprehensive studies and investments, adding that most of these plants are based initially on an automated business model.
These factories can adopt more digitalized models, with no impact on the role of the human cadres, he noted.
Tasnee reported SAR 327.5 million in earnings for Q1 2021, versus SAR 51.8 million losses in the year-earlier period, Argaam reported.
Related News
Tasnee turns to net profit of SAR 327.5 mln in Q1 2021 |
Tasnee has sufficient provisions, product prices surge in Q1 2021: CEO |
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