Q&A: Dr Al Saadon, secretary general of the GPCA

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Dr Abdulwahab Al Saadon, secretary general of the Gulf Petrochemical and Chemical Association discusses the challenges facing the industry

How do you evaluate the current market situation?

The current downturn is affecting everybody; nobody is immune from the impact of the credit crunch. It hits the industry as demand has shrunk in Asia and some segments of the US market, mainly the auto industry, which is one of the major end users of chemical plastic. Everybody has been affected, but we believe the competitiveness of regional players puts them in a better position compared to other players around the world.

What is the agenda of GPCA?

GPCA was established in 2006, by eight petrochemical producers. During this time, GPCA has evolved to be a regional platform for sharing knowledge and best practices among industry players. GPCA functions through working committees that are made up of members. So far, we have four committees: for human resources, supply chain, HSE and plastics.

What are the challenges?

GPCA is a platform representing industry players, so whatever challenges face the industry are challenges facing the organisation. During downturns, there are moves toward protectionism and this is a key challenge we want to address through the collective efforts of all the members. This is going to be handled by GPCA as a platform that serves the interests of regional companies.

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M&A deals are part of the growth process. Companies expand through organic growth or acquisitions and this is the right approach for reaching new markets and gaining access to appropriate technology.

what has been the impact of the financial crisis?

The local players are in a better position relatively speaking. The impact is felt by all players around the globe, but we do believe GCC producers are the least affected by the current crisis.

How can GPCA help companies facing human resource problems?

HR is one of the key ways of maintaining competitiveness in the industry and all the major players have invested significantly in developing local human resources. Most current players do now have a national pool of labour; several companies now have a local work force exceeding 80% as a result of significant investment.

GPCA has established a working committee dedicated to human resource related issues, whereby best practices are shared and programmes are tailored for major companies. Our training programmes are, of course, also open to non members.