Tasnee CEO says oversupply weighs on markets, 2026 ‘challenging’

Tasnee CEO Fawaz Al-Fawaz says the market is likely to need about six months to rebalance supply and demand

Fawaz Al-Fawaz, CEO of National Industrialization Co. (Tasnee), said 2026 will be a “difficult year” for petrochemical producers amid global economic and geopolitical uncertainty, as supply is set to exceed demand due to new capacity additions and rising exports from China.

In an interview with Asharq Bloomberg news channel, Al-Fawaz said the market is likely to need about six months to rebalance supply and demand, but remained optimistic about improved conditions in 2027.

He said the sector's overall operational performance remains solid across operations, safety and production, despite pricing pressures, noting that some plants in Europe and parts of Asia have begun shutting down or reducing output.

Tasnee focuses on commitments, reliability, safety, and production, Al-Fawaz said, adding that the company is improving efficiency, maintaining cost discipline and sustaining capacity utilization, supported by governance frameworks that drive continuous improvement.

He stated that the board-approved strategy prioritizes expanding the petrochemicals business.

The gas allocation from the Ministry of Energy will allow Tasnee to double output over the next five years and grow its titanium business, the CEO said.

The company restructured the Acrylic Complex loans in 2025 with commercial banks and the Saudi Industrial Development Fund (SIDF), he said, adding that the work is on to complete the restructuring of the remaining facilities.

On dividends, the CEO said payouts remain important, but Tasnee is balancing debt reduction, strengthening its balance sheet and maximizing profit.

The board will take a call on the appropriate approach, he noted.