Market needs 6 months for supply-demand to rebalance: Tasnee CEO

Fawaz Al-Fawaz, CEO of Tasnee

The market is facing pressure from a glut of products, particularly petrochemicals, CEO of National Industrialization Co. (Tasnee) Fawaz Al-Fawaz said, adding that about six months, until mid-2026, may be needed for the surplus to ease and supply-demand balance to return.

Speaking to CNBC Arabia, Al-Fawaz said Tasnee is boosting operational efficiency, improving plant reliability, and cutting costs without compromising employee safety or the environment.

The company is also diversifying products, enhancing value-added output, and focusing on emerging markets with stronger profit margins.

Al-Fawaz said challenges remain significant due to rising supply, weak demand, and global economic uncertainty.

He noted that Tasnee balances its focus between the domestic market, its top priority, and exports to the Middle East, Turkey, Africa, and select Asian markets.

The CEO said total consolidated loans stand at around SAR 5.5 billion, rising to about SAR 7.5 billion including subsidiaries, emphasizing that Tasnee has a clear repayment plan aligned with debt maturities.

Al-Fawaz said the company’s financial position is adequate and improving, with cash exceeding SAR 2.4 billion.

He added that all plants are operating at full capacity, with plans to raise production of some petrochemical products by 18% in the second half of 2026. A second furnace at the Jazan metals plant will also boost output during that period.

Tasnee’s net profit rose to SAR 271.5 million in the first nine months of 2025, up from SAR 69.8 million a year earlier, while it posted a SAR 558.5 million loss in the third quarter, according to Argaam’s data.