Saudi Top Plastic CEO says raw material prices to ease, IPO under study

Abdullah Alajami, CEO of Saudi Top Plastic Factory

Abdullah Alajami, CEO of Saudi Top Plastic Factory (STP), said that plastics raw material prices will gradually see a comedown during the second half of the year.

STP’s sales and profit rose by 92% and 55%, respectively, in 2021, he told Argaam in an interview, attributing this robust performance to better average selling prices globally and the opening of new markets. The Saudi company exports products to more than 30 countries worldwide.

Polymer prices in Saudi Arabia are among the highest in Asia, the CEO noted, expecting price differences to remain between the GCC and other major Asian markets in the coming period.

On the other hand, Alajami explained that supply chains face global pressures, due to higher demand post-pandemic, the Russian-Ukrainian war and the closure of some ports in China for a long time, which, in turn, affects global demand and pushes shipping rates higher.

When asked about IPO plans, Alajami said that STP is studying market conditions and future plans. “STP will list shares on the Saudi market at the right time,” he added.

STP purifies and filters plastic granules to produce primary products. It owns the Middle East’s largest polyethylene wax factory, the first of its kind in this field.