BREAKING NEW GROUND IN THE DOWNSTREAM PETROCHEMICALS SECTOR

BREAKING NEW GROUND IN THE PETROCHEMICALS SECTOR

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Dan Starta, Managing Director & Partner , Middle East Dan.Starta@atkearney.com

BREAKING NEW GROUND IN THE DOWNSTREAM PETROCHEMICALS SECTOR

etrochemical companies in the GCC region are in an enviable position. With the necessary technical knowledge and capital already in place, these players are ideally positioned to integrate into the high value added downstream chain, while at the same time support governmental industry development policies. The GCC economy has enjoyed riding two historically acclaimed development waves within the energy sector. The rst spearheaded oil and gas production and the second led to the expansion of the bulk petrochemicals industry. There is now a third on the immediate horizon, waiting to carry savvy players toward developing long-term wealth, if they are willing to enhance existing value chains. In association with the GPCA, A. T. Kearney has identied a four-step framework to guide petrochemical companies to the next industry development opportunity, to build on advantages inherent within existing value chains and achieve protable growth for the long-term.
The hydrocarbon industry has demonstrated continued growth for over six decades. Today Gulf petrochemical companies are listed among the top global players in the commodity chemicals segments (olens, polyolens oxygenates, glycols, urea). Specialty chemicals and manufacturing expansion are the next frontiers. The GCC petrochemical sector has already taken signicant steps toward moving downstream, expanding manufacturing capabilities of commodity materials. However, the industry is not yet fully mature and opportunities exist for growth into key segments on the intermediate chemicals as well as the end-product applications side. Forward thinking petrochemical players will expand local manufacturing capacity to meet both local and international demand. This includes manufacturing high margin value products such as those in automotive components, paints and coatings, as well as healthcare. In particular, the majority of GCC economies (excluding Bahrain and Oman) have negative trade balances (net imports) in manufactured goods (see gure 1). This includes imports of end-products based on components originally sourced from the region. For example, childrens plastic playgrounds currently imported from international markets. Given the existing value chain infrastructure already in place, local players could build capabilities to capture additional value from manufacturing these products locally and, once established identify export opportunities.

Louis Besland, Partner, Middle East louis.besland@atkearney.com

Jos A. Alberich, Partner, Middle East jose.alberich@atkearney.com

Bartek Znojek, Consultant, Middle East bartek.znojek@atkearney.com

BREAKING NEW GROUND IN THE PETROCHEMICALS SECTOR

BREAKING NEW GROUND IN THE PETROCHEMICALS SECTOR

Figure 1
GCC Manufacturing trade balance Years 2000-2010 net imports of manufacturing products as %GDP
4.3% 4.0%

Figure 2

Understanding downstream opportunity

Chemical industry Naphtha

Aromatics
Toluene O-Xylene P-Xylene Benzene Cumene Phenol Styrene PA/PTA Bisphenol-A Nylon MMA PS

Plastic / Rubber conversion

Packaging Films Clothing

Isocyanates) ABS

3.2%

3.3%

Acetone

Polycarbonate PMMA

PET

/ SAN

Butadiene

C3=

2.2%

2.2%

2.3%

Condensate

2.5%

2.4%

2.5% 2.1%

Propylene Polypropylene Isopropanol

Acrylonitrile Polyether

Acrylic Carbon

Epichlorohydrin

polyols

fiber fiber

Compo- Compo- Assemunding nents bly

Applications and formulated chemicals
Cosmetics Inks Detergents Adhesives

Ethylene

C2=

Ethylene

Ethylene PVC

Natural gas

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

Oxide

EDC/VCM HDPE

glycols

LDPE

EPDM EVA Ethanolamines Polyacetal Polyvinyl

LLDPE DOP PF

C1

Source: UNCTAD database, A.T. Kearney analysis

Methanol MTBE Ammonia

Urea

Methylamine Acetic

Solvents Water Oil

GCC Petrochemical Industry Development Next Wave of Growth

Expanding local manufacturing capacity downstream present petrochemical players with benets in three key areas. These include opportunities to maintain growth, capture further value and make a meaningful contribution to creating job placements for a young growing population. Maintain aggressive growth despite existing feedstock allocation challenges. Competition to feedstock access is brewing. The traditional feedstock, ethane, is ultimately limited in certain countries

and may therefore not be a sustainable source to support the long-term future growth of the petrochemical industry. Capturing more value along downstream chains allows players to incorporate, economically more expensive, available feedstock such as those from gas condensates and naphtha. Expanding alternative technologies such as Methanol-toOlens or Gas-to-Liquids provides another feedstock capacity alternative. Capture and maximise value creation. GCC Petrochemical players are in a strong position to access available, low cost commodity chemicals, which can serve as feedstock for more

resins

acid Polyvinyl acetate

alcohol

/ gas treatment field chemicals Coatings

Feedstock
Current production

Basics

Inter- Derivat- Specialt- Fine mediates ives ies chemicals

Formulation

Diversification planned

Source: A.T. Kearney analysis

Historical Development of the Hydrocarbon Industry

The hydrocarbon industry has demonstrated continued growth for over six decades. Development Wave 1: Since the 1940s the Middle East has generated extensive economic activity from the mining of hydrocarbons by tapping into vast proven natural reserves. Today exporting natural resources remains a signicant contributor to the regions GDP, where economic value is realised primarily from extracting crude oil and natural gas. Development Wave 2: Expanding sector capabilities in the 1970s monetised stranded natural gas, which could not be exported as easily as crude. The result was burgeoning national revenue streams. Access to low cost natural gas feedstock, combined with a focus on easily exported commodity products has fueled growth of the local industry and securely placed the GCC on the world map. The petrochemical industry is an extremely efcient vehicle to differentiate revenue streams away from purely crude oil and gas export trades.

advanced high value products. Such downstream products are less exposed to the overall market uctuations (like oil price). While this reduces exposure to commodity prices, it also builds capability to develop markets for specialised products for the growing local population the long-term demand engine. Corporate Social Responsibility. GCC population growth is among the highest in the world and with that comes the responsibility to create a continuous supply of job opportunities. Developing downstream not only creates new opportunities for value capture, but also contributes to economic growth and job creation for a growing, young population.

Understanding The Opportunity for Expansion Downstream

It is critical for petrochemical companies to carefully consider the various opportunities for expansion into downstream petrochemicals. The opportunities span multiple interelated industries and sectors from advanced chemicals to plastics and rubber through to formulated chemicals (see gure 2). A.Chemical industry: intermediate and specialty chemicals. Diversication of the existing product range, toward more advanced products within the currently developed chemical value chain, offers increased returns for GCC chemical producers. Longer-term expansion plans are also viable with the introduction of new products currently not manufactured in the region.

Consumer and Industrial end-markets

5

C4=

Synthetic

rubbers (SBR, PBR, ..) PBT

/ carpets Consumer goods Durables Automotive Tires

BREAKING NEW GROUND IN THE PETROCHEMICALS SECTOR

BREAKING NEW GROUND IN THE PETROCHEMICALS SECTOR

B. Plastics and rubber conversion industry. Potential exists for expansion within the conversion industry to meet existing local demand, as well as potential export demand for nished goods. GCC countries are in a strong position to cultivate manufacturing hubs, located at strategic cross-roads of global trade routes, all of which have the potential to build mediumsized scale capacities to serve local demand. Furthermore, new molecules not yet produced at signicant scale in the region, such as engineering plastics, synthetic rubbers and polyurethanes could be introduced to companies within the existing value chain infrastructure for both local and export market trade. C. Applications and formulated chemicals. Increasing availability of new intermediate products (particles) within the chemical industry can create a positive domino effect of subsequent development opportunities in related sectors. For example, this includes local regional trade in the area of coatings, paints, detergents and oileld chemicals.

Tackling The Challenges of Downstream Expansion

Following over three decades of successful growth and established regional chemicals industry practice, making fundamental changes to business approaches can appear complex. The industry is diverse, with each segment reecting a unique set of challenges. For bulk mass production manufacturers a cost focus is key, whereas for those exploring more specialty products, technical expertise, innovation and process optimization is more important. Producing high margin products downstream offers petrochemical players higher protability, but not without meeting and understanding the challenges, particular to each segment. A. Chemical industry : intermediate and specialty chemicals Existing, regional petrochemical value chains are typically dominated by commodity products. This is inuenced by attractive feedstock costs and historical practice. Very recently, the larger GCC players have initiated a clear move towards diversifying their product portfolios to include more, advanced value added products, alongside current commodity production lines. Despite the growth opportunities intrinsic to such a diversication strategy, there are challenges, which must be tackled to achieve protable expansion. Establishing the necessary fundamentals within the value chain infra-

structure is complex but there are solutions. These challenges surround segment selection addressing feedstock access competition, route to market and accessing technical expertise. These challenges are examined in detail below. Diminishing feedstock advantage. Reaching the prot potential of entering the next step in the value chain is contingent on the local availability of the required raw materials. Continuing to achieve attractive protability levels without direct upstream integration (availability of the upstream basics and intermediates molecules in the route) will be a signicant challenge for the industry. Currently dominant ethane-based feedstock cannot sustain capacity for product differentiation strategies. The availability of natural gas is limited and yields of ethane cracking in the underdeveloped value chains (C3=, C4= and aromatics) are small, driving requirement for change towards heavier feedstock found in condensates and naphtha feeds. Heavier feedstock is benchmarked to global market prices (for example those in Japan, the Pacic basin and the NWE and the continental pipeline in the Atlantic basin). These market prices are typically offered with discounts on a local market basis. Using globally benchmarked feedstock is linked to higher pricing volatility and therefore may signicantly reduce overall protability calculations for GCC downstream production, even when considering cracking credits from value yields in the heavier fed chains. Alternatively, local companies might pursue non-traditional routes to produce molecules in the same value chains. Methanol-to-Olens (MTO) and Gas-to-Liquids (GTL) technologies are commercially available, yet economies of such processes are heavily affected by margin loss when methanol is converted to ethylene and propylene in the MTO process. Furthermore, availability of natural gas for GTL processes is limited. This alternative approach requires close review on a country by country basis and is dependent on the evolution of liquidity in LNG markets and, the impact of non-conventional gas in the indices of the main trading hubs. Segment selection. Client requirements will also drive higher total cost compared to current business models for Gulf companies (for example high-touch technical support, increased complexity in production and new supply chain infrastructure) and will determine the overall protability of selected downstream integrations. Larger investments by local market

players may also be required to introduce products to new, inexperienced clients, demanding more services and support than simple approvals and basic formulation specications assistance. Extending existing value chains, based on raw material availability is the rst priority in downstream expansion. This approach locks-in margins already captured in the upstream product and allows for the protable production of additional products. The SABIC-Celanese Polyacetal (POM) and SIPCHEM project to expand acetyls illustrate the potential of such an approach by extending the C1 chain, based on the ready supply of local low cost methanol with limited requirements for feeds from other value chains. Further developments will require liquid feedstock cracking resulting in increased availability of heavier products to be used in higher value chains downstream. Different eco-

nomics of liquid feedstock require protability calculations based on the total value captured along the chain (feedstock to end product), with limited benchmarking of intermediates or price indexations. An integrated approach to driving value from feedstock to the end product, delivers the additional benet of reducing exposure to market volatility risks introduced by liquid feedstock market risk exposure. Analysis of the historical prices indicate the more downstream the product group is positioned, the less variable its price is, therefore resulting in more stable revenue and less exposure to changing market conditions (see gure 3). Downstream market availability and route to market. Current diversication efforts in the region focus mainly on mature specialty products (like polycarbonate) where production costs and access to low cost feedstock is as essential as for the commodity products. The more challenging products

Figure 3

Price stability of products along value chains Product price variation coefficient (standard deviation / average), 1995-2011
Feedstock C1 C2= C3= C4= Aromatics

naphtha

benzene

styrene

PS

Moving downstream along same value chain reduces feedstock price exposure

Feedstock

Basics

Intermediates / Derivatives

Specialties

Source: CMAI, SRI, A.T. Kearney analysis

BREAKING NEW GROUND IN THE PETROCHEMICALS SECTOR

BREAKING NEW GROUND IN THE PETROCHEMICALS SECTOR

Figure 4

Plastics demand for conversion (kg per capita, 2010)

GCC countries Developed countries 1

attractive take-over opportunities for cash rich GCC companies, making medium-sized companies with technology in derivatives and specialties an affordable and attractive investment option. B. Conversion industry: plastic and rubber transformation The plastics and rubber conversion industry value chain is directly linked to petrochemical producers through the purchasing of polymers and mechanical transformations and through the later assembly of nished products. Based on converters consumption re-calculated per capita, the GCC conversion industry, with an overall consumption of 73kg per capita, is considered reasonably strong and mature when compared to other developed countries, with an overall 76 kg per capita (see gure 4). This segment is focused mainly on resins conversion where consumption is driven by end-use applications, such as packaging (LLDPE for lm and bags, HDPE for boxes and PET for bottles), construction (pipes) or automotive. The analysis reveals the region is lagging behind in the consumption of engineering resins, which are typically used for production outside the GCC of plastic parts and advanced components. Examples include ABS, Polycarbonate and to a certain extent, engineering grades of Polypropylene and LDPE. One of the key reasons for this lag is due to the lack of end-product manufacturers in the region, like OEM manufacturers, which traditionally attract converters close to their own manufacturing plants. Availability of the engineering plastics / grades through new capacities in the region, recently announced by local producers, will also create opportunities for further development of the local plastics conversion industry, opening opportunities in higher value added end products. The availability of the synthetic rubbers and carbon black can further develop this sector and initiate new industrial activities, based on elastomers, including the production of technical rubber/metal components and tires. C. Applications and formulated chemicals This segment includes products directly linked to local and regional markets, such as paints, adhesives, cosmetics, detergents, which cannot be transported economically over long distances. Market size, limited availability of the raw materi-

76 73 17 15 12 8 13 14 14 11 9 8 4 1 2 7 3 7

2 0

Total

LLDPE

LDPE

HDPE

PP

PVC

PET

Polyester es ster PS and Fiber EPS

ABS

PC

Note: (1) Developed countries: USA, Western Europe, Canada, Japan, South Korea, Taiwan, Australia Source: SRI, CMAI, A.T. Kearney analysis

placed even further in the value chain such as niche chemical specialties are still in their infancy in the GCC. Niche chemical specialties demand more, sophisticated molecules for specic applications, reecting highly targeted customer segments. The typical business model used by GCC producers is focused on the export of bulk, commoditized product, yet this is not a predominant business model globally for sales of the specialty chemicals. If local companies are to be successful in this area, they will need to develop innovative sales approaches to adapt to consumer segment requirements. This necessitates close cooperation with the client in understanding product applications, including access to high levels of technical support. Moreover, the ability to provide customised products within a new supply chain infrastructure, supported by dedicated planning processes, is also required. Technical expertise and know-how. Access to technical expertise and know-how is required to produce specialty products. This is currently limited in local markets. Typically,

specialty product technologies are usually controlled by a limited number of players, very often global chemical companies, demanding dedicated marketing and licensing fees and specialist technical services. One way to increase access for regional companies is to participate in joint venture (JV) partnerships or more realistically potential acquisition of chemical companies with specialist knowledge. The GCC region has an excellent track record of successful JV agreements. The majority of GCC petrochemical represent corporate entities structured on partnerships with external companies, which provide proprietary technology and required know-how. Nevertheless, looking forward, technology owners might be reluctant to enter JVs given the diminishing feedstock advantage - helping Gulf companies add production capacity to the global pool could potentially be seen as undermining their own position and protability globally. Alternatively, the non-organic growth strategy might be a viable option that should be always considered. The current downturn in the economic cycle is expected to present

als to develop the segment and the high technical complexity required for protable operation may lead to limited growth. Companies within this segment require strong product application knowledge to understand the specic needs of both industrial and mass-market customers. Detailed segmentation of end user market needs is key, as similar molecules are utilised in different applications, sometimes presenting significant differences in protability opportunities. Expert knowledge of application specications and performance of the nished product are key success factors. Competence in value-based pricing - de-coupling chemicals selling price from the respective commodities upstream and market uctuations in feedstock prices - is critical for protability. The GCC faces signicant challenges in developing the local formulation market. Attracting new players is a challenge without secured availability of the required molecules from the petrochemicals segment and signicant local demand, from both consumer and industrial segments. Establishing a critical mass in the local market rst, will pave the way forward for the sector to expand and identify export market opportunities in different market segments, based on similar molecules. Lasting success in the development of this segment will depend on the GCC countries ability to attract the right companies, with required specialist knowledge applications understanding and distribution capabilities.

The Way Forward to Downstream Development

GCC petrochemical companies are strongly positioned to take the lead in downstream expansion. Existing global reach of GCC petrochemical players has embedded the industry with unique insight into trends and value chains of multiple segments, which can be leveraged to shape and support local development downstream. Championed by key GCC industry stakeholders, numerous initiatives have begun supporting downstream expansion. These include: economic cities, free zones, infrastructure development, expansion of higher education and research centers and government support. A common approach has been to build specic industrial areas, known as chemical poles and polymer parks, where downstream players can cluster together in a favorable environment. Although this is a strategy of choice in the region, favourable conditions

BREAKING NEW GROUND IN THE PETROCHEMICALS SECTOR

BREAKING NEW GROUND IN THE PETROCHEMICALS SECTOR

Figure 5

Downstream development four step approach

Tire manufacturing opportunity

Initiators Supporting creation of the business
Initiators capture quantifiable business catalysts to drive return on investment and activate business.

Ingredients Setting right ecosystem

Economic enablers focus on securing the necessary environment for the development of business activity.

Downstream Development
Innovators Developing competitive advantage
Innovation is a continuous process and remains a key part of economic development.

Incubators Supporting growth

Incubators accelerate the successful development of entrepreneurial companies through business support resources and services.

Favourable local market conditions surround the tire manufacture segment. Interlinked to the burgeoning car market, the tire segment is backed by sustainable, on-going demand with a 4+1 per car requirement and, an aftermarket 3-4 times size of the OEM market. Existing chemical companies have the advantage of local, established infrastructure and there is no requirement for startup car assembly activities; 50 percent of all supply materials can be made available through the local market (exclud-

ing natural rubber and some smaller parts eg. fabric and llers). The global market is dominated by three main tire manufacturers: Michelin, Bridgestone and Goodyear, each with specialised technology expertise, currently not available in the GCC. These international names have established brand equity and consumer franchise, which can be leveraged and developed into local specic, product differentiators. For example, this could include innovations specic to local market conditions and speci-

cations delivering family protection/ safety product advantages. Industry analysis reveals these three lead players have reduced market share in emerging markets*, suggesting fertile ground to explore partnerships and mutually benecial joint protability agreements in downstream expansion.

*Ref. Deutsche Bank analysis, 2009; michelin.com

Figure 6

Applying the 4 I framework to the tire segment

Ingredients
Source: A.T. Kearney analysis

Initiators Create understanding in global players strategy and key global growth objectives Approach one of the global players to invest locally

Incubators Reinforce network of local suppliers Enhance access to export markets Promote made in GCC Long term supply contracts & partnerships

Innovators Setup innovation center targeting local market conditions (climate, roads, typical car types.) Consider tires for other vehicles Radically new innovation (ref. Michelin Active Wheel)

are only part of the solution; additional effort is required to unleash the full downstream value potential. There are no short-cuts. For example, implementing advantageous pricing to selected downstream customers will only enable short-term growth beyond critical startup size. Similarly, adopting purely a greeneld approach may increase technology and market risk, if incumbents in some value chains react to new, anticipated market entrants. Success will ultimately depend on the market viability of the chosen initiatives. When strategically matched with regional advantages, each downstream segment represents opportunities for value capture for all chemical companies. Our four step approach the 4 Is - provides a structured framework within which chemical companies can best leverage local market advantages and support initiatives to successfully impact economic development for the long-term (see gure 5).

1. Ingredients. Economic enablers focus on securing the necessary environment for the development of business activity. The majority of regional ecosystem support initiatives, currently led by governments and chemical companies, have led to the establishment of polymers parks and chemical poles, supported with infrastructure and nancial enticements ingredients. 2. Initiators. Initiators capture quantiable business catalysts to drive return on investment and activate business. Minimal attention is given to activating new regional business and attracting established players to expand the industry downstream. 3. Incubators. Incubators accelerate the successful development of entrepreneurial companies through business support resources and services, developed and orchestrated by incubator management and offered both within the incubator and through its network of contact incubators. Within the GCC region, only a limited number of industry initiatives target

Ensure supply of synthetic rubber Training for young GCC car enthusiasts Ensure space, energy, logistic infrastructure, access to domestic sales channels

this step, and this is primarily executed through guaranteed supply conditions. 4. Innovators. The ultimate goal of innovation is value creation. Innovation is a continuous process and remains a key part of economic development. Establishing a culture of innovation is the only sustainable long-term competitive advantage but this takes time. In the short-term companies must identify how to overcome this challenge through sourcing capabilities. Application of the framework to the tire segment highlights the opportunities available (see gure 6).

Chemical Companies Role Framework

Within the Four Step

The role of chemical companies in the four step process varies according to product strategy and market segment focus. Individual players may not necessarily participate in all four steps, however for industry long-term development a logical order of the four step framework is necessary. The rst priority is to setup favourable conditions to trigger the creation of downstream business. Once companies are established, initiators, incubators and innovators support growth to sustain future development. Potential roles for chemical players within each step are examined below.

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Figure 7

Downstream initiator matrix

Access to sales channels

cost optimization. GCC chemical players are ideally placed to become leading ambassadors for the sectors development and can indirectly inuence regulatory decisions to support overall industry growth.
Access to technology Initial size

companies to remain in the innovation loop within a collaborative approach with downstream players.

Sustainable Downstream Expansion

Gulf Petrochemical companies are in an ideal position to expand downstream and tap increased prot potential. This potential is not easily reached and, requires detailed process planning, accurate decision making on the production of selective molecules and products and a new approach to historical practice. Petrochemical players targeting truly sustained growth will leverage unique insight and infrastructure knowledge and enhance existing value chains to integrate into the higher value added products. With one of the highest population growth rates in the world, expanding downstream will not only contribute to the regions overall GDP but will create fertile ground for the many job placements required for the younger population over the next decades.

Chemical company actions and levers Recognition programmes Advertising/media Startup workshops Setup business angels network From start up Acquisition of international player Co-investments (JVs) Preferred partnerships Licensing (ie. in-house developed technology) Co-development/collaborative innovation Spin-offs Technology / application innovation centers Entrepreneurship Leverage international customer network: awareness and marketing of local business environment Targeted business propositions in line with international downstream players growth strategies

Greenfield entrepreneurship

Direct vertical downstream investment by chemical company Vertical collaboration with end-market Indirect creation of startups

FDI from global downstream

Ingredients - building optimum ecosystem elements. Developing optimum ecosystems for local downstream development requires continued cooperation between the key stakeholders: government, chemicals players, customers and support services such as banks and utilities. Key contributions by chemical companies include establishing regional market intelligence on downstream opportunities in the region. Using global market knowledge and trade ow monitoring insights, chemical companies can effectively foster knowledge creation, management and dissemination within the industry. This extends to responding to market opportunities by adjusting product mix (eg. new polymer grades ) or adding new products (as detailed in gure 2). Talent management and securing consistent talent inow to the market is key, given expanding chemical companies are competing for talent from the same pool. Access to diverse, adequately skilled and competitively priced pools of technicians, engineers, managers and support staff is vital for successful industry expansion. Initiators triggering industry growth. Downstream integration, away from commodity petrochemicals toward producing local intermediate and nished goods, requires a t between segment value drivers and regional strengths. These
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new projects can be either part of an already existing downstream business (such as converters, which offer a strong platform for development) or a new company created specically to explore new opportunities downstream. There are ve main scenarios for chemical companies to engage in downstream expansion, depending on existing capabilities, business lifecycle stage and protability objectives. The strong position of chemical companies in the local and global markets opens a broad range of possibilities in this area: becoming an active player does not necessarily require direct involvement in subsidiary company by chemical player. Incubators - coaching downstream players to protable growth. Striking the right balance between protective, supporting measures and allowing new ventures to effectively compete is crucial. This includes maintaining committed product availability (both volume and mix) to market, establishing joint operational improvement effort and potentially, reviewing pricing strategies to reduce local market price uctuations. Extended technical and sales support can become effective tools in driving operational improvement through supply chain efciency and helping downstream companies reach
BREAKING NEW GROUND IN THE PETROCHEMICALS SECTOR

Growth potential

Initiator route to market

Innovators: establishing a platform for future development. The importance of innovation is already well understood by the regional petrochemical industry. This is indicative of the on-going research centers and university collaboration projects underway throughout the region. However, innovation by its very nature never remains static and chemical companies have a signicant role to play in leading a culture of on-going innovation - beyond internal business operations extending to customer engagement. Establishing effective innovation communication channels with dedicated workshops on lessons learned and success stories for example, provide platforms for innovation to thrive. Access to technology plays an important role in this step and supports chemical

BREAKING NEW GROUND IN THE PETROCHEMICALS SECTOR

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About The Gulf Petrochemicals and Chemicals Association The Gulf Petrochemicals and Chemicals Association (GPCA) is a dedicated and non-prot making association serving all its members with a variety of data, technical assistance and resources required by the petrochemicals and chemicals industry. GPCAs mission is singular and specic in that it intends to support the growth and sustainable development of the petrochemical and chemical industries in the Gulf in partnership with its members and stakeholders and be both a sounding board and a meeting point for debate and discussion. It is the rst such association to represent the interests of the industry in the Middle East and it has brought a major dimension to its task by creating both a forum for discussion and a place where likeminded people can meet and share concepts and ideas. Since its inception in March 2006, the GPCA has earned the enviable reputation for steering the regional industry towards a whole new level of co-operation and raising the standard in terms of common ground interests. Additional information is available at www.gpca.org.ae

About A.T. Kearney

A.T. Kearney (www.atkearney.com) is a global management consulting rm that uses strategic insight, tailored solutions and a collaborative working style to help clients achieve sustainable results. Since 1926, we have been trusted advisors on CEO-agenda issues to the worlds leading corporations across all major industries. A.T. Kearneys ofces are located in major business centers in 37 countries. From our Middle East ofces in Abu Dhabi, Bahrain, Dubai and Riyadh, A.T. Kearney supports both private and public sector clients as well as nations to excel and prosper by combining our regional expertise and global business insights to achieve results. For more information, visit www.atkearney.ae.

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BREAKING NEW GROUND IN THE PETROCHEMICALS SECTOR