Saudi PVC market seen to exceed $892 mln by 2020

The PVC (polyvinyl chloride) industry in Saudi Arabia is expected to surpass the $892 million mark by 2020 on increased construction activities, according to studies conducted by TechSci Research.

Favorable government policies are also boosting the market. The government is encouraging active private sector participation in major infrastructure projects through Public Private Partnership (PPP) and Build-Operate-Transfer (BOT) models. It is also setting up industrial parks and clusters for plastic conversion in the kingdom’s central & western regions.

Saudi Basic Industries Cooperation (SABIC) is currently the country’s largest producer and supplier of PVC resin. Other players include Arabian Plastic Compounds Co.(APC), Interplast Co., Al Rajhi Industrial Group, TIB Plastic Industries, Middle East Specialized Cables Co (MESC), Bahra Cables Company, Al Thinayyan Holding Group, and Intergulf-Empol.

“Major players, such as Sabic, have started incorporating backward integration to counter the fluctuations in prices of feedstock and volatility in crude oil prices,” said Karan Chechi, research director at TechSci Research. “Moreover, in-house compounding is another trend noticeable in the Saudi Arabian PVC market."

Rigid, as well as flexible PVCs are vastly used in the construction industry in the form of PVC pipes, window profiles, cables, flooring, etc.

The material, which is less expensive than leather products and can be water-resistant, is also used in the production of some clothing, such as coats, aprons, bags, or skiing apparel.