Sipchem eyes expansions locally, overseas, says CEO

Sahara International Petrochemical Company (Sipchem) is planning to expand its product offerings through partnerships with local and international players, the firm’s CEO Saleh Bahamdan told Argaam.

“We have studied markets in America, North Africa and Asia as part of our drive for new projects,” Bahamdan said.

He also noted that some products have reached the bottom, and that prices will begin to improve in 2020.

“US-China trade war has affected the end-product, which has led consumers to stop buying manufacturing items, hence affecting raw materials import,” Bahamdan said.

However, he is not worried about the markets as Sipchem’s products are in high demand.

“Our company strategy focuses on two products, including methanol and polypropylene. Price fluctuations are nothing new for petrochemical industry,” Bahamdan said.

“We will adjust to such issues through efficiency in using raw materials including gas and energy, as well as slashing operating costs and unnecessary expenses,” he further added.

Commenting on setting up a committee to freeze energy mix prices, Bahamdan said market conditions are challenging for all companies, hoping that feedstock prices will not increase as this will make things harder.