Focus on Africa
Manama : Fertilizer industry should focus on the African continent and work together to expand the most promising markets, a top official said, pointing out that the market conditions are not ideal, thanks to economic crisis and environmental concerns.
Gulf Petrochemical Industries Company (GPIC) President Dr. Abdulrahman Jawahery was speaking in the Seventh Forum of the Gulf Petrochemical and Chemicals Association (GPCA) held in Dubai, from September 6 to 8. He also heads the International Fertiliser Industry Association (IFA) and the Arab Fertiliser Association (AFA).
Dr. Jawahery said fertiliser these days provided greater agricultural yields, but focus on the environment exposed the Industry to more scrutiny from various UN agencies, organisations, scientists, non-governmental organisations and national policy makers, with several critics saying the Industry is the main source of pollution of the environment.
He said there was a need to transfer knowledge and experience gained by the giants of this vital Industry to the youngsters to ensure continuity.
The GPIC president pointed out they should combine their strategies in reducing production costs while maximizing the efficiency of the supply chain.
Explaining the importance of the Gulf region as a global hub for the manufacture of chemical fertilisers, Dr. Jawahery said the vital Industry cannot be stagnant but has to continuously evolve to keep pace with rapid development all over the world.
GPCA Secretary General Dr. Abdulwahab Al Sadoun stressed on the important role of the GCC’s fertiliser producers in the development of the Industry and to enhance its competitiveness in the face of fierce competition in the global markets.
GCC fertiliser production on the rise
Production of chemical fertilisers in the Arabian Gulf will reach 43.1 million tonnes in the next five years, at a growth rate of 14 per cent.
This was revealed in a report issued recently by Gulf Petrochemical and Chemicals Association (GPCA).
The report, “Fertilizer Industry indicators in 2015”, says the GCC region produces 37.8 million tonnes, and sales have reached $6.3 billion.
The report indicated that the size of the production of fertilisers has almost doubled from its level in 2005, due to strong demand from export markets, which created stronger business relationships with multiple markets such as India, the United States and Brazil.
Saudi Arabia leads the region in the production of fertilisers with an annual production capacity of up to 16.7 million tonnes, followed by Qatar with a capacity of 9.8 million tonnes per year.
The GPCA was launched in 2006 as a union of Petrochemical and Chemical producers in the GCC.
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