Continuing growth in construction industry coupled with favorable government policies to drive PVC market in Saudi Arabia
According to recently published TechSci Research report "Saudi Arabia PVC Market Forecast & Opportunities, 2020", Saudi Arabia PVC market is anticipated to outstrip USD892 million by 2020. Rigid as well as flexible PVCsare vastly used in construction industry in the form of PVC pipes, window profiles, cables, flooring, etc. Additionally, PVC is also used in apparels in form of synthetic leather to create a leather-like material. PVC fabric is less expensive than leather and is water-resistant, so it is being increasingly used in coats, skiing equipment, shoes, jackets, aprons, and bags.
Saudi Basic Industries Cooperation (SABIC) hold absolute dominance as the largest producer and supplier of PVC resin in Saudi Arabia. Other players operating in the country's PVC market include Arabian Plastic Compounds Co. Ltd. (APC), Interplast Co. Ltd., ALRajhi Industrial Group, TIB Plastic Industries, Middle East Specialized Cables Co (MESC), Bahra Cables Company, Al Thinayyan Holding Group and Intergulf-Empol, with their focus mainly concentrated in the production of PVC compounds.
The expansion of construction industry and upcoming infrastructural developments in the Central and Western regions of the country is boosting the demand forPVC. Government initiatives towards encouraging active private sector participation in major infrastructure projects through Public Private Partnership (PPP) and Build-Operate-Transfer (BOT) models, as well as setting up of industrial parks and clusters for plastic conversion in Central & Western regions is anticipated to significantly benefit PVC market in Saudi Arabia.
"Saudi Arabia PVC market is set to show promising growth over the next five years on account of various ongoing and upcoming infrastructural developments in the country. Major players such as Saudi Basic Industries Cooperation have started incorporating backward integration to counter the fluctuations in prices of feedstock and volatility in crude oil prices. Moreover, in-house compounding is another trend noticeable in the Saudi Arabian PVC market," said Mr. Karan Chechi, Research Director, with TechSci Research, a research based global management consulting firm.
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