Plastics sector must innovate in food, says ME industry chief

Currently less than 20% of the Middle East's plastics output is converted into finished products within the region. And sectors like flexible packaging have seen relatively sluggish growth in recent years, despite significant market potential. 

“Innovation holds the key to the success and sustainability of the region's plastics industry, not only in the solutions we provide, but also in the way we operate our facilities,​” Abdulaziz Alhajri, CEO of Borouge and chairman of the Gulf Petrochemicals & Chemicals Association (GPCA) plastics committee, told the PlastiCon plastics conversion conference in Sharjah.

“Our effort to innovate throughout the value chain enhances technology and operational excellence and significantly adds value to a variety of industry sectors including healthcare, infrastructure and packaging​,” he added.

Slow growth​

PCI Films Consulting estimates the Middle East flexible packaging market to be worth around US$1.16bn, with almost all demand being fulfilled by regional producers. But the sector has seen only 2.5% growth in the last five years.

Dr Abdulwahab Al-Sadoun, secretary-general of the GPCA, also told the conference he expected the region's small and medium enterprises to be the main drivers of innovation.

“SMEs are today at the forefront of business innovation in the Middle East. SMEs involved in plastics conversion are particularly innovative as they extend the plastics supply chain by creating value-added products for the construction, infrastructure and food & beverage sectors, while creating thousands of new jobs​,” he said.

Diverse industry​

In contrast to the monolithic plastics production industry, there are more than 1,000 small and medium companies within the plastics conversion sector in the region, according to the GPCA.

Saudi Arabia is the largest regional plastics converter, with 62% of the market. The UAE follows with 19%. The GPCA predicts plastics conversion in the region will grow from 4.5 million tonnes currently to reach 7.5 million tonnes by the end of the decade.

“Together the plastics producers and convertors should explore the practical benefits that can be gained from their proximity, leveraging the growing polymer competence in the region and partnering to develop world-class end-use applications and making 'Made in the GCC' a mark of quality. Creating value through innovation is an essential ingredient for our mutual success on the global stage​,” said Alhajri.