Sabic expects continued demand from China, Europe
Riyadh, March 21, 2012
Saudi Basic Industries Corporation (Sabic) expects demand to continue in 2012 from China and Europe and plans to start projects in the manufacturing industry next quarter, its chief executive told Reuters.
'International demand is still reasonable... Demand will continue in 2012 from Sabic's traditional markets in China, the kingdom and Europe,' Mohamed al-Mady said on the sidelines of a corporate event. 'It is true that growth in China fell from 8.5 per cent to 6.5 per cent but I don't think there is a fear of a decline in demand from China.'
Sabic posted a 10 per cent drop in net profit for the fourth quarter which it attributed to lower prices due weaker economic growth.
'Manufacturing industry projects will start in the next quarter. We will start the designs and the execution will be in early 2013,' Mady said, adding that some of those projects will start production in 2016.
Asharq Alawsat daily newspaper reported last week that Sabic plans to commit $6 billion on investments in the manufacturing industry in order to products for conversion industries.
Earlier this month Saudi Oil Minister Ali al-Naimi said the kingdom, which is trying to diversify its economy away from oil, produced plenty of raw materials and petrochemicals but still did not invest enough in the manufacturing of finished products. – Reuters