GPCA Chairman urges industry to rethink strategies
GPCA members will need to rethink their long-term business strategy in order stay relevant and prosper in a highly competitive environment, the association’s Chairman Yousef Al-Benyan said on Tuesday in his welcome address at the 13th Annual GPCA Forum.
“I have to remind each one of us that in 2016 and 2017 we had talked about the need for industry consolidation and clear measures for transformation,” said Al-Benyan, also Vice Chairman and CEO of SABIC. “I have to say, so far, there is not enough progress in order for us to secure the future competitiveness of our industry. I urge you strongly here at GPCA to take this opportunity to leverage and rethink your long-term strategy.”
Al-Benyan identified three key parameters that would determine the long-term viability of the chemical industry in the GCC region.
The first of these is whether a company has enough of a global footprint. “If you do not have presence in the major markets North America or China, you need to question your long-term viability,” he said.
The other key area is how much has a company invested in technology and renovation as a percentage of its revenue, and the third parameter has to do with “customer intimacy”.
“If you do not have minimum two of them, I think the viability of your business in the longer run needs to be questioned,” he stated.
Al-Benyan, who has repeatedly called for transformation of petrochemical industry in the Middle East as crucial for its viability, reminded delegates at the forum once again about how important it was.
He said transformation and consolidation is a must to compete with new players, namely those in North America due to shale gas developments and China because of its coal-to-chemicals technology.