4.

GCC Production Capacity by Product (2008-2012)

Overview of global
ethylene production
Global Ethylene Production Capacity by Region (2008-2012)

1.4%
Latin America 5.3%
0.4% Others
Africa

GCC

11.6%

Europe

Latin America

22.1% Asia (Excl China)

2008
129.0
million tons

1.2%
4.7% 0.3% Others

Africa

GCC

14.4%

2012
150.9
million tons

8.1% China

24.6%

22.9% Asia (Excl China)

Europe

13.1% China

21.3%

26.5% North America

22.0% North America

Source: Mitsubishi Chemical Techo-Research Corporation (MCTR), ICIS, GPCA

Ethylene is one of the main basic petrochemicals and

is used to produce polyethylene (PE), ethylene oxide
(EO), ethylene glycol (EG), polyvinyl chloride (PVC)
and polystyrene (PS) and various intermediates such
as ethyl acetate.. In 2012 world ethylene capacity
reached 150.9 million tons per annum representing
a growth of 4% per annum since 2008. Asia is the
largest ethylene producer in the world accounting for
36% of worlds total. Ethylene capacity growth in Asia
between 2008 and 2012 was 8.7% per annum and
is one of the highest in the world and higher than the
worlds total growth of 4%.

In 2012, GCC ethylene capacity was 21.7 million tons

per annum which accounts for 14.4% of worlds total.
It grew by an average 9.7% per annum in comparison
with worldwide growth of 4%. As a result, GCC share
in the worlds ethylene capacity has increased from
11.6% in 2008 to 14.4% in 2012.

GCC Ethylene production capacity

accounts for 14.4% of worlds total

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4. GCC Production Capacity by Product (2008-2012)

Overview of global
ammonia production
Global Ammonia Production Capacity by Region (2009-2012)

4.0% Africa
GCC 4.0%
1.0% Others
Latin America

North America

3.0% Africa
1.0% Others
GCC 5.0%

6.0%

Latin America

9.0%

North America

2009
189.5
million tons

Europe

6.0%

8.0%
2012
204
million tons

52.0% Asia

24.0%

Europe

54.0% Asia

23.0%

Source: International Fertilizer Association (IFA) Production and International Trade, September 2013

Today, virtually all nitrogenous fertilizers are

derived from ammonia. Ammonia is produced from
hydrocarbon feedstock and is a key intermediate for
fertilizer production such as urea, ammonium nitrates,
ammonium phosphates and compounds. Ammonia is
the only viable source of nitrogen for producing large
amounts of protein. The nitrogen content of fertilizers
improves both the quantity and quality of proteincontaining crops.

The North American capacity for ammonia production

reached 16.2 million tons in 2012, which accounted for
5% of worlds total. Similarly to Europe, over the past
  
  
in North America. In 2009, North American ammonia
capacity was only slightly lower than 16.2 million tons
which resulted in an average growth of 0.2%. This is
lowest growth among other regions.

World ammonia production capacity reached 204

million tons in 2012, representing an average growth
of 2.5% per annum since 2009. Asia traditionally
has been the largest ammonia producer in the world
accounting for more than half of worlds ammonia
production capacity. In 2012, Asias capacity to
produce ammonia reached 109.3 million tons per
annum which accounts for 54% of worlds total.

Production capacity in Latin America in 2012 was

11.5 million tons, an increase from 11 million tons
in 2009. While demand in Latin America has been
rapidly increasing due to the strong development of
the agricultural sector, ammonia capacity expansion
in this region continues at slower pace of than in other
regions. Between 2009 and 2012 it has registered a
growth of 1.5% per annum which is lower than worlds
average growth of 2.5% p.a.

Europe (comprised of Western, Central and Eastern

Europe) is the second largest producer of ammonia
representing 23% of worlds total ammonia production
capacity or 46.1 million tons. Over the past years there
have been no major ammonia capacity additions in
Europe and therefore capacity growth between 2009
and 2012 is modest at 0.6%.

Slightly behind Latin America, GCC ammonia capacity

in 2012 was 11.3 million tons which makes GCC
5th largest among other regions. Rapid capacity
expansion in the GCC from 8.3 million tons in 2009
to 11.3 million tons in 2012 has made ammonia
production in the region the fastest growing among
other parts of the world.

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4. GCC Production Capacity by Product (2008-2012)

Overview of global
polypropylene production
Global Polypropylene Production Capacity by Region (2008-2012)

1.9% 1.4% Others

Latin America 7.1%
GCC 6.6%
Africa

Latin America
GCC

27.1%

North America

16.0%

1.8% 1.2% Others

5.0%

Africa

12.9%
26.6% Asia (Excl China)

Asia (Excl China)

2008
51.6
million tons

North America

2012
61.9
million tons

14.1%

17.2% China
Europe

20.6% China

22.7%

Europe

17.8%

Source: Mitsubishi Chemical Techo-Research Corporation (MCTR), ICIS, GPCA

Polypropylene (PP) is the second widely used polymer

after polypropylene (PE) with application industries
including packaging, domestic appliances, automotive,
housewares, furniture, medical and industrial.

which represents 17.8% of the world total. There were

    
and therefore its share has declined from 22.7% in
2008 to 17.8% in 2012.

World production capacity of polypropylene in 2012

is estimated to be 61.9 million tons with almost half
(47%) of the capacity located in Asia. China is the
single largest polypropylene producing country in Asia.
Chinas 2012 PP capacity is estimated at 12.7 million
tons which represents 20.6% of the world total. .

North Americas polypropylene capacity in 2012

is estimated to be 8.7 million tons which accounts
for 14.1% of worlds total. Polypropylene capacity
additions in North America over the past years have
been minimal. As a result the 2008-2012 annual
compounded growth was 1.5% per annum.

Combined capacity of producers in the rest of Asian

countries (excluding China) reached 16.5 million tons
in 2012 which accounts for 26.6% of the world total.
Strong polypropylene demand in China encouraged
producers to increase manufacturing capacity. As a
result PP capacity in China grew by an average 9.5%
per annum between 2008 and 2012. A similar trend
was observed in other Asian countries, where PP
production capacity has increased from 13.9 million
tons in 2008 to 16.5 million tons in 2012.

GCC region is slightly behind North America. In 2012

GCC polypropylene capacity was 8 million tons which
accounted for 12.9% of the world total. The share of
GCC polypropylene sector has doubled since 2008
when the region accounted for 6.6% of worlds total
PP production capacity. This was a result of extensive
capacity additions by GCC producers which have
added more than 4.5 million tons of PP capacity since
2008.

Polypropylene production in Europe has been

traditionally high. In 2012, PP production capacity in
this region was estimated at 11 million tons per annum

Latin America and Africa remain the minor producers

with 3 million tons and 1.1 million tons per annum of
PP production capacity respectively.

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4. GCC Production Capacity by Product (2008-2012)

Overview of global
HDPE production
Global HDPE Production Capacity by Region (2008-2012)

12.0% Asia (Excl China)

Rest of the World

21.0%

4.0% China

Rest of the World

18.0%

1.0%
3.0%

22.0% Asia (Excl China)

Africa

2.0%
Latin America 4.0%

Latin America

Africa

GCC

2008
34.4
million tons

26.0% North America

10.0%

GCC

Europe

2012
41.7
million tons

21.0%

12.0% China

17.0%
Europe

12.0%

15.0% North America

Source: ICIS, GPCA, 2013

High density polyethylene (HDPE) is the largest of the

three polyethylenes (PE) by volume of consumption.
HDPEs properties give it higher strength compared
with other polyethylene allowing a wide range of
uses. Major application of HDPE is blow-moulding
for products such as bottles for milk and other noncarbonated drinks, drums, fuel tanks for automobiles,
toys and household goods. Because HDPE has
good chemical resistance, it is used for packaging
many household and industrial chemicals such as
detergents, bleach and acids.
In 2012, worldwide HDPE production capacity reached
41.7 million tons, up from 34.4 million tons in 2008.
This capacity increment has been largely driven by
Asian producers The HDPE production capacity in
Asia reached 14.5 million tons in 2012 which accounts
for 34% of the total globally. Over the past few years,
HDPE capacity in Asia has been growing by an
average 40.1% per annum the highest among all
other regions. China is the largest HDPE producer
among Asian countries and accounted for 12% of
worlds total or 5.2 million tons.

North America is the second largest producer of HDPE

globally. With production capacity of around 6.2 million
tons, North American producers account for 15% of
worlds total, down from 26% in 2008. Similarly, the
share of European producers has declined from 21%
in 2008 to 12% in 2012.
The combined capacity of HDPE producers in the
GCC in 2012 is about 7.1 million tons. This accounts
for 17% of worlds total. Since 2008, GCC HDPE
production capacity has grown by an average 26% per
annum which is second highest growth rate after Asia.

Since 2008, GCC HDPE production

capacity grew by an average 26%
p.a which is second highest after
Asia.

Source: ICIS, GPCA, 2013

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4. GCC Production Capacity by Product (2008-2012)

Overview of global
LLDPE production
Global LLDPE Production Capacity by Region (2008-2012)

10.0% Asia (Excl China)

13.0%
Africa 2.0%
Latin America 6.0%
Rest of World

1.0%
Latin America 5.0%
Africa

2012
30.4
million tons

30.0% North America

GCC

GCC

12.0%

2008
22.8
million tons

16.0%

24.0% Asia (Excl China)

9.0% China
Europe

Europe

7.0% Rest of World

14.0%

14.0%

15.0% China

22.0% North America

Source: ICIS, GPCA, 2013

Linear Low-Density Polyethylene (LLDPE) is part of

     
along LDPE and HDPE. Globally, the majority of
  
food and non-food packaging to produce heavy duty
 ! 
applications include liquid paper board coatings, wire
and cable, injection moulding parts, pipes etc.
Global production capacity of LLDPE reached 30.4
million tons, up from 22.8 million tons in 2008.
World consumption of packaging materials created
opportunities for LLDPE producers worldwide. Almost
all LLDPE capacity expansion since 2008 has taken
place in Asia. This has resulted in Asia having the
highest capacity growth among other regions: 38.1%
per annum between 2008 and 2012. This capacity
expansion has increased Asias share of global
capacity from 19% of worlds total in 2008 to 38% in
2012 making Asia the leading LLDPE producing region
in the world.

worlds total production capacity, down from 30% in

2008. Similarly, the global share of European LLDPE
producers has decreased from 16% in 2008 to 12% in
2012.
GCC LLDPE producers continue to be the third region
worldwide after Asia and North America. In 2012,
LLDPE production capacity in the GCC has reached
4.3 million tons which accounts for 14% of world total.
GCC LLDPE capacity growth between 2008 and 2012
of 10.9% per annum was one of the highest after Asia.

LLDPE production capacity in the

GCC has reached 4.3 million tons
which accounts for 14% of worlds
total.

In mature markets such as Europe and North America

there have been limited capacity additions and
closures of less competitive units. As a result, North
American LLDPE producers accounted for 22% of

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