German-Saudi Business Magazine October 2014 The Petrochemical Industry in Saudi Arabia Oil & Gas Petrochemical Midstream German - Saudi Business Magazine Editorial Dear readers, Andreas Hergenröther Delegate of German Industry & Commerce for Saudi Arabia and Yemen Saudi Arabia is maintaining its leading position as the region’s largest petrochemical producer with an annual 86.4 million tons of capacity. Home to more than a quarter of the world’s proven oil reserves, Saudi Arabia boasts over 257.8 trillion cubic feet of gas reserves, 40 percent of which is non-associated, making the Kingdom’s quantity of reserves the fourth largest in the world after Russia, Iran, and Qatar. Since more than 95 percent of the Saudi Arabia’s basic petrochemicals are derived from methane and natural gas feedstock, the country’s commitment to expanding its natural gas infrastructure will enhance its competitive advantage in the global petrochemical and plastics markets. According to the Royal Commission for Jubail & Yanbu, Saudi Arabia produces over 50 unique petrochemical products. There are around 60 petrochemicals projects currently in the pipeline. German companies have been strong partners for sustainable long-term business relations in the petrochemical sector in Saudi Arabia for decades. Chemical giant BASF plays an active part in the Saudi construction landscape, supplying construction chemicals to mega projects including the two Holy mosques in Makkah and Madinah, the building of the King Abdul Aziz International Airport in Jeddah, King Abdullah Economic City, the Maaden Aluminium Smelter in Ras Al Khair. BASF also supplies products to prominent clients such as the Royal Commission for Jubail and Yanbu. Another example is the family-owned company Bischof+Klein that has been producing FFS packaging solutions on the basis of co-extruded films as well as stretch hood and shrink films. The plant in Dammam has a total output of almost 24,000 metric tons. German company Evonik Industries and Saudi Acrylic Acid Company (SAAC) have established a joint venture called Saudi Acrylic Polymers Company (SAPCo) for the production of superabsorbents. SAAC is a joint venture of the Saudi companies National Industrialization Company (Tasnee) and Sahara Petrochemicals. The production facility has an annual capacity of 80,000 metric tons. Other major investments were made in the petrochemical sector by Fuchs Petroleum which owns a modern industrial complex in Yanbu on an area of 10,000 square meters with an annual capacity of 160,000 metric tons of oils and lubricants, Henkel with manufacturing facilities in Dammam, Erndtebrücker Eisenwerk and Thyssen Krupp Uhde. “Made in Germany” is renowned around the world for its attributes of premium quality, state-of-the-art technology and know-how. The latter takes a pivotal role in the success story that “made in Germany” achieved and it is here that the German industry is a strong partner for many industries and regions, helping spread it to local production sites. To create a better awareness of the high potential of German-Saudi Arabian business relations we would like to present in this current edition the portfolios of some of the major petrochemical companies in the Kingdom. Andreas Hergenröther AHK Saudi Arabia - www.saudiarabien.ahk.de 1 Contents 05 54 06 11 08 Editorial 01 Alhamrani-FUCHS 28 AHK Saudi Arabia 04 OKS 30 German Desk Opens in Jubail 05 Zeppelin 32 Petrochemicals 06 Chemanol 34 Saudi Aramco 08 Linde Engineering 36 SABIC 10 ThyssenKrupp AG 38 Lurgi 40 Zamil Group 12 EEW Global Pipe Company 42 Ma’aden 16 LISEGA Arabia Co. Ltd. 44 Henkel Polybit 17 Draeger Saudi Arabia 46 Tasnee Petrochemicals 18 V-Line 48 SADARA 20 IBE 50 Evonik Industries 22 Trade Fairs 52 Bischof + Klein 24 AHK Services 56 58 BASF 26 Your contact persons at AHK Saudi Arabia 31 28 36 41 38 46 42 Design & Developed by: 26 www.fawazadvertising.com In accordance with GESALO Disclaimer: German–Saudi Business Magazine (GSBM), Issue October 2014 Editor-in-Chief Andreas Hergenröther Head of Public Relations Christian Engels Responsible for Printing AHK Saudi Arabia © Copyright GSBM 2014. All rights reserved. No part of this magazine may be reproduced without GSBM’s written permission. The opinions expressed in GSBM do not necessarily reflect the views of the German Delegation of Industry and Commerce for Saudi Arabia and Yemen (AHK Saudi Arabia). GSBM is not responsible for the validity of contents in articles written by external authors. German - Saudi Business Magazine HISTORY AHK Saudi Arabia The official representation of the German economy in Saudi Arabia The Delegation of German Industry & Commerce for Saudi Arabia and Yemen (AHK Saudi Arabia) has been founded in 1978 by Royal decree under the name of German-Saudi Arabian Liaison Office for Economic Affairs (GESALO). AHK Saudi Arabia is part of the German Chamber Network and the official German Foreign business promotion. With 130 offices worldwide AHKs offer their experience, connections and services to German and companies of their partner countries. With a staff of 20 employees, AHK Saudi Arabia supports Saudi and German companies with its services. AHKs are closely connected to the Chambers of Industry and Commerce (IHKs) in Germany. Together, they represent in total 3.6 million companies in Germany. AHK Saudi Arabia is the official representative of German economy in Saudi Arabia. Besides this AHKs are service providers to companies under the brand “DEinternational” AHKs provide services to companies both from Germany and their host countries in order to support their foreign business activities. These services include conducting market studies and providing sector information, matchmaking, business consulting, organization and representation of trade shows, issuing business publications, legal information, medical treatment support and vocational training, etc. the first office for German–Saudi economic relations, which has been established by Royal Decree. Since October 2010 Andreas Hergenröther is the current Delegate of German Industry and Commerce for Saudi Arabia and Yemen. Under his lead the German-Saudi business relations tightened within one year even more and many projects are on the way deepening these relations. In December 2010 the first GermanSaudi Arabia Desk has been established at the Bielefeld Chamber of Industry and Commerce. It functions as an information platform about Saudi Arabia for all German companies. Under the lead of Mr. Hergenröther more than 100 events in Germany and Saudi Arabia have been organized by AHK Saudi Arabia in order to promote GermanSaudi business relations. With its services for German and Saudi companies AHK Saudi Arabia is in a key position for the bilateral economic relations. Every businessman, who is interested in doing business in Saudi Arabia or in Germany will find an individual concept of entering the market, promoting its business through trade fairs and find the perfect business partner from the other country. It is also Saudi companies, business representatives and the Saudi Chambers network that clearly profit from GESALO’s work in the context of the German foreign trade promotion. AHK Saudi Arabia more than 30 years of experience On average, GESALO organizes 250 4 German-Saudi Arabian business relations follow a long tradition In 1978 the Joint German-Saudi Economic Committee composed by representatives of the German Ministry for Economics and the Saudi Ministry of Finance decided to establish a German foreign trade commission in Saudi Arabia. On August 22nd 1978 was the inauguration of individual Business Partner Searches annually. This opens investment opportunities to Saudi companies as well as partnerships for technology and knowledge transfer. Numerous information events are being held by GESALO staff in Germany to promote Saudi Arabia as an investment location and advocate for technology partnerships with Saudi companies. This contributes remark- ably to making Saudi Arabia visible in the German economy. GESALO’s connections to the internationally important German fair sites foster the making of contacts between Saudi companies and German business partners with innovative technologies. For this reason, GESALO organizes numerous business delegations for Saudi Arabian exhibitors and visitors to trade fairs, aiming at promoting export and connecting Saudi companies with German cooperation partners. By delivering key technologies and providing know-how “Made in Germany”, German companies have been contributing for many years to the realization of projects that are of strategic value for Saudi Arabia, for example in the oil and gas sector, in petrochemicals, in the construction of power plants and grids, but also in border hedging. Beyond this, the matter of vocational training has gained importance for Saudi Arabia. Also in this field, German companies and German know-how belong to the global top. GESALO has established itself as important relay station for optimized knowledge transfer and will continue to hold that position. Both countries are the major players in their respective regions. Bilateral trade has risen from 4 bn US $ in 2003 to 10.8 bn US $ today by more than 170 %. Not only has the economic opening brought this success about, but also did the work of GESALO as a catalyst for business have a decisive share in that intense cooperation. Unlike bilateral trade, the field of investments is still waiting for more mutual engagement. GESALO is in the focus here, too. It serves as important contact point for both sides, to accompany potential investors professionally. German - Saudi Business Magazine HISTORY German Desk Opens in Jubail to Facilitate Transfer of Technology The ‘German Desk’ opened at the Jubail Branch of Asharqia Chamber aiming at facilitating transfer of technology for the industrial development at the twin cities of Jubail. Dr. Peter Ramsauer, Chairman of the Committee of the German Parliament for Economic Affairs & Energy, inaugurated the event last month. Mr. Hassan M. Al Zahrani, Vice-Chairman of Asharqia Chamber, Michael Ohnmacht, Acting German Ambassador to the Kingdom and Mr. Andreas Hergenrother, Delegate of German Industry and Commerce for Saudi Arabia were present. Germany is keenly interested in participating in the Kingdom’s on-going economic development, said Dr. Peter Ramsauer adding that he was amazed witnessing tremendous industrial development in Jubail. German technology and industrial equipment are of high quality compared to other countries, he noted. Mr. Al Zahrani pointed out that the opening of the German Desk in the Kingdom’s industrial hub of Jubail will give a fresh boost to the already strong trade and commercial relations between Saudi Arabia and Germany. Many globally recognized petrochemical plants built by the Saudi Arabian Basic Industries Corporation (SABIC) are based in the Jubail Industrial CitiesOne and Two. In addition, Saudi Aramco has several large-scale new projects such as Sadara Chemical Company and Saudi Aramco Total Refining & Petrochemical Company located in the twin industrial cities, he said. German companies have strong presence in the Saudi market offering high-tech products and expertise. Over 100 German companies are now represented in Saudi Arabia and their combined investments, according to the Saudi Arabian General Investment Authority, reached over $8 billion, noted Mr. Zahrani. He invited German firms to take advantage of liberalized economic policy and a package of incentives announced by the Saudi government for foreign investors. The liberalized economic policy has made Saudi Arabia the most favorable country for businesses in the Arab world, Middle East and North Africa region, observed Mr. Zahrani. Currently, the annual two-way average trade has reached over SR42.7 billion, of which, Saudi imports from Germany are valued at around SR41.3 billion while Saudi exports to Germany are worth only 1.4 billion Riyal. Mr. Zahrani offered Chamber’s willingness to cooperate with German companies in order to support them in their efforts to identify trade and investment opportunities in the Kingdom. Mr. Hergenrother noted that Germany is a key supplier of technology and know-how to the Kingdom particularly to its Eastern Province where many German companies have established their production bases. These German firms included Linde (industrial gases), Siemens (gas turbines), BASF (construction chemicals), Kenkel (industrial coatings), Evonik (suberabsorbants), Bischof & Klein (packaging) and Erntebruecker Eisenwerke (pipelines). Mr. Hergenrother mentioned the strong presence of the German logistic giant DHL which has become the largest German employer in the Kingdom employing over 4,000 people. For creating employment opportunities, DHL has been honored with the Prince Nayef Award for the highest Saudization quota of a foreign company in the Kingdom. AHK Saudi Arabia - www.saudiarabien.ahk.de 5 German - Saudi Business Magazine Petrochemicals Expansion of Downstreaming on a Large Scale in Saudi Arabia The Saudi Arabian petrochemicals sector is expected to advance and expand due to private and government incentives and initiatives to diversify the country’s export portfolio. The downstreaming initiatives already bear fruit and are set to quickly become a stable pillar in what is still considered an upstream economy. According to industry insight, Saudi Arabia’s petrochemical industry exports are set to reach 100 million tons by 2016. Ten percent of the global petrochemical export products have been manufactured in Jubail and Yanbu in the kingdom’s economically vibrant coastal regions. Both cities form the center of the petrochemical industry and have played a key part in the Kingdom’s determination to develop hydrocarbon-based industries. The Saudi Central Department of Statistics and Information (CDSI), numbers the total value of Saudi Arabia’s petrochemical exports with 66.64 billion SAR, approx. 14.206 billion € for 2012, growing at a 12-year CARG of 15 percent. The Saudi Arabia petrochemical sector is well positioned in the region and driven by a positive global demand outlook. With an annual capacity of 86.4 tons of petrochemical products, Saudi Arabia is the region’s largest petrochemical producer. For ethylene, it is the world’s third largest producer, accounting for 11 percent of global ethylene production. Petrochemical production capacities are forecast to remain at their already high level until 2016, when output is set to grow on a rapid pace through the coming-on-stream of Sadara’s petrochemical complex. Saudi Arabia 06 is challenged by rising prices of exploration and production of non-associated gas, as well as potentially rising petrochemical output of global competitors, whose competition will result in thinner profit margins. Recently discovered North American shale gas and oil which is currently flooding the market and driving down the world market price is likely to have an impact on the Saudi petrochemical sector, regardless the fact that the technology needed to extract it is still in its preliminary stage. MEED analyses the situation as follows: “While cracking liquid feedstock will not provide as high margins, the process produces a wider range of co-products that can increase the range of chemicals manufactured in the region.” The petrochemical industry depends on four main building blocks for developing end products. Petrochemical cracking units produce ethylene, propylene, butadiene and benzene. These organic components are the byproduct of either natural gas or naphtha, which count as light or heavy feedstock respectively. While most of Europe’s and Asia’s industries rely on naphtha, which is a crude oil derivate, most of the Americas and the Middle East consume more of the light feedstock ethane and liquefied petroleum gas (LPG). Due to the abundance of oil in Saudi Arabia, the petrochemical sector will rely mostly on heavy feedstock. The Saudi petrochemical sector is expected to grow due to several factors. First, Saudi Arabia has substantial proven feedstock reserves, with 264 billion barrels of crude oil, 297.7 trillion cubic feet (tcf) of natural gas and an estimated 600 Petrochemicals tcf of unconventional shale gas. Second, albeit the strength of Saudi Arabia is in the production of simple petrochemical products in the present, companies such as Saudi ARAMCO and SABIC can calculate with government-guaranteed, low input prices, which are currently around 90 % cheaper than on the world market. By September 2014 U.S. natural gas costs stood at $4.29/mmbtu, whereas Saudi natural gas prices were have been fixed at Saudi Aramco’s pricing of $0.75/mmbtu for many years. Hence Saudi companies are expanding their petrochemical production capacities. On the contrary, European companies buy raw materials at world market prices. However, in reality the production costs of natural gas extraction in Saudi Arabia are much higher than the fixed price. Gas the Karan gas field costs in production $3.5/mmbtu, gas from the more difficult Arabiyah field will be even higher after launching production, up to $5.50/mmbtu. Third, the country has strong industrial and regulatory infrastructure, which have been inte-grated into specially built-up industrial cities. The Saudi Arabian Oil Company (ARAMCO) and the Saudi Basic Industries Corporation (SABIC) are the major actors in the sector. Being the world’s largest oil producer, ARAMCO is in a key position: The state-owned company invests in multi-billion-dollar projects, acts as a shareholder of many joint ventures and provides the feedstock for numerous petrochemical plants. SABIC as the biggest company in the entire Middle East region was founded in 1976 to push forward the diversification of the local industry. According to Gulf Petrochemicals and Chemicals Association, GCC member states were producing 39 million tons of petrochemical products in year 2000. Eight years later, in 2008, the production increased to 100 million tons. All in all, Saudi Arabia contributes three quarters to the production of petrochemicals in the entire Gulf region. German - Saudi Business Magazine Today, industrial products make up more than 90 percent of the Kingdom’s non-oil exports. Saudi Arabia exports petrochemicals, plastics, metal goods, construction materials and electrical appliances to some 90 countries. Saudi decision makers put unprecedented efforts in the diversification of the down-stream industry to establish a labor intensive industry. SABIC and Saudi ARAMCO to-gether with many additional players in Saudi Arabia are undertaking the implementation process. In addition to increase the mass production of basic petrochemicals like polyethylene and polypropylene, Saudi Arabia focuses on expanding its downstream activities. Downstream products like acetone, carbon oxide, polyethylene etc., which are the basis of higher value added products, shall be produced in the Kingdom. Within the next five years, the production of 120 new chemicals will begin. The Middle East business intelligence MEED lists 26 projects in the Saudi petrochemical sector with an investment volume of 15 billion USD that are under construction. Another 42 planned petrochemical projects are 46 billion USD worth. The goal of the country is to become a global leader in the petrochemical industry in the near future. Saudi Arabia has direct access to the required raw materials oil and gas and will be able in the future to extract shale gas, too. It thus has plenty of energy, which is needed to produce petrochemical products. This dynamic trend will intensify in the future. Beneficiaries of this reform could be German suppliers of machinery, the chemical industry, equipment, technologies and services. Moreover, the transfer of Know-How from Germany to Saudi Arabia is a major field of business to flourish. The preconditions for German companies are promising. Many German companies already have their share in the ascent of Saudi petrochemicals. An example how the future can look like is the joint venture Saudi Acrylic Polymers Company (SAPCo). In August 2011 the company was founded by Evonik, Tasnee and Sahara Petrochemicals to produce 80.000 tons per year of superabsorbent polymers in Jubail, starting in 2014. Another player on the Saudi market is The Linde Group which is collaborating with Sa-dara. The German company invests 380 million USD in Jubail to supply Sadara with carbon monoxide, hydrogen and ammonia at a chemical complex now being built by Sadara in Jubail. Bischof + Klein produces flexible packaging solutions in Al-Khobar and Zeppelin is active in Jubail in the plant manufacturing business. German plant and mechanical engineering companies, providers of technology and external suppliers will find vast investment opportunities concerning the expansion of petrochemical plants in Saudi Arabia and the Gulf region. Among the largest projects currently planned or under execution in Saudi Arabia is a refinery and petrochemical complex in Jubail that is being commissioned at the moment. The project is projected to 14 billion USD by Saudi Aramco Total Refining and Petrochemical Company. The plant will, among other facilities, include: a multi feed cracker, an aromatics complex, auxiliary utilities, a cooker unit, a conversion unit and crude storage tanks. Further plants being planned or constructed with a projected value of at least 1 billion USD are: refinery for clean transportation fuel (Aramco), Dammam 7 - Acrylic Acid and Acrylates Complex, an elastomers project (KEMYA), the Rabigh Refining and Petrochemical Complex Expansion (Petrorabigh). Major investments like Sadara’s Jubail Petrochemicals Complex and Aramco’s/Mitsubishi’s/Nabaa’s Yanbu Integrated Refinery and Petrochemical Complex will be covered in the company’s respective profiles in the forthcoming articles. AHK Saudi Arabia - www.saudiarabien.ahk.de 07 German - Saudi Business Magazine Saudi Aramco Saudi Aramco German - Saudi Business Magazine In order to achieve that goal, Saudi Aramco has taken all possible steps to develop the country’s natural gas potential. The company is the sole producer of the feedstock in the kingdom. This includes not only the development of conventional small and large fields but also drilling of shale gas resources and further exploration of the kingdoms geological areas to discover further potential drilling sites. Promising wells are being expected in the so far largely unexplored Saudi Arabian Red Sea coastline. Gas makes already 50 % of the Saudi Arabian energy mix. Saudi Aramco The Saudi Arabian Oil Company (Saudi Aramco) is Saudi Arabia’s fully state-owned oil company. It ranks first among oil companies worldwide in terms of crude oil production and exports, and natural gas liquids (NGL) exports, and is among the leading producers of natural gas. Saudi Arabia administers the world’s largest crude oil reserves roughly one fifth of the global total at nearly 260.1bn barrels. It has a production capacity of 12.5 million barrels a day (b/d). Aramco makes an estimated $1bn a day from its vast oil exports, accounting for 51 per cent of Saudi Arabia’s GDP and 80 per cent of government revenues. Saudi Aramco is a fully integrated oil 8 company with operations in exploration, production, refining, marketing and international shipping. It is rapidly progress-ing towards becoming the world’s leading integrated energy and chemicals company. The company has 57,000 employees and is headquartered in Dhahran in the Eastern Province of Saudi Arabia. Aramco has had a major share in the Kingdom’s achievements in integrating its refining and petrochemicals facilities to realize further economic diversification. In recent years, the company has moved away from being a predominantly upstream operator to a fully diversified hydrocarbons company. Recently, Aramco has made massive investments in its downstream operations, which aim to increase the amount of refined products for domestic use and export, as well as drive industrial diversification. In this context, Aramco has invested almost $30bn in new refineries in the kingdom since 2009, with several billion more being spent on upgrading and expanding existing facilities. Aramco operates seven refineries in the kingdom with an overall capacity of 2.5 million b/d. The overall capacity is forecast to increase by 800,000 b/d until 2017 with two new refineries to start operations. The refineries are going to be built in the petrochemical and industrial hubs of the Kingdom, Jubail and Yanbu. A third refinery is under construction in the country’s remote and economically relatively underdeveloped southern Jazan region, which lies at the Yemeni border. The 400,000 b/d complex, including a large network of petrochemicals plants, will be fully owned by Aramco and serve as one of the major job suppliers of planned Jazan Economic City that is set to stimulate the region’s economic development. Internationally, Saudi Aramco holds substantial joint venture and investment interests in refining and marketing activities in the United States, the Republic of Korea, Japan, and China. Key market service support offices are located in major cities in North America, Europe and the Far East. Sadara Chemical Company is one of Aramco’s successful Joint Ventures. It was established in 2011 in collaboration with US based Dow Chemical. As already mentioned in the article above, the Joint Venture is setting up 26 production facilities in Jubail, capable of producing 3 million tons of products every year. This refining and petrochemicals integration initiative will ensure downstream petro-chemicals facilities have ample supplies of liquid feedstock, such as naphtha, and natu-ral gas liquids (NGLs) to create a more diverse product slate, which can then be used for conversion industries. The new downstreaming platforms will be based on technology and backed by initia-tives for fostering innovation. Currently, Aramco is strengthening its R&D program with a technology agenda that incorporates both the upstream and downstream sectors. According to MEED Vol 58/No 36, Saudi Aramco has to invest $ 40bn over the next decade to keep oil production capacity steady and double gas production. Saudi economy will need close to 40 million b/d of new capacity in the next twenty years to meet forecast demand growth. AHK Saudi Arabia - www.saudiarabien.ahk.de 9 German - Saudi Business Magazine SABIC SABIC (Saudi Basic Industries Corporation) SABIC (Saudi Basic Industries Corporation) was established by Royal decree in 1976 and its growth has been nothing short of miraculous. Today it is the Middle East’s largest listed company. SABIC’s creation was a bold step for a developing country. It marked a move into using the by-products of oil extraction to produce value-added commodities such as chemicals, polymers and fertilizers for export. SABIC is now the world’s largest ethylene producer. These commodities were also intended to create new industries, helping Saudi Arabia to diversify and to develop. Today, the company has operations in over 40 countries with a global workforce of over 40,000 individuals. Ranked among the world’s largest petrochemicals manufacturers, SABIC is a public company based in Riyadh, Saudi Arabia. 70% of the Company’s shares are owned by the Saudi Arabian government, with the remaining 30% held by private investors in Saudi Arabia and other countries of the Gulf Cooperation Council. SABIC is composed of six business units, each headed by an Executive Vice President. These are: Chemicals, Polymers, Performance Chemicals, Fertilizers, Metals and Innovative Plastics. These six operating units make four distinctly different kinds of products: • Chemicals - Chemicals and Performance Chemicals • Plastics - Polymers and Innovative Plastics • Fertilizers • Metals SABIC’s principle corporate offices and headquarters are in Riyadh, Saudi Arabia with major industrial operations in the industrial city of Al-Jubail on the Arabian Gulf, as well 10 SABIC and MRC (Mitsubishi Rayon Company) have confirmed incorporation of The Saudi Methacrylates Company (Saudi Methacrylates) in the beginning of the year and the appointment of CTCI Corporation as the EPC construction partner for the plants be-ing built in Al-Jubail, Saudi Arabia. SABIC and MRC each have a 50% stake inthe joint venture. Under construction are acrylates plants for olefins and aromatics with a project volume of 520,000,000 US$. The plants will have a capacity of 250,000 t/y of MMA and 40,000 t/y of PMMA. SABIC Europe and SABIC in Germany as in Yanbu on the Red Sea. Net profits in 2013 touched SR 25.3 billion (US$ 6.7 billion). Total assets stood at SR 339.1 billion (US$ 90.4 billion) at the end of 2013. SABIC’s overall production has increased from 35 million metric tons in 2001 to 68.5 million metric tons in 2013. SABIC’s global presence continues to grow rapidly. Plans for expansion are matched by the development of an infrastructure of manufacturing plants, distribution centers, offices and storage facilities worldwide. The company’s manufacturing, sales, technology and innovation facilities are located throughout the globe and are managed by four regional offices: the Middle East and Africa, Asia, the Americas and Europe. SABIC has awarded Munich-based The Linde Group with a contract to build the world’s largest carbon dioxide (CO2) purification and liquefaction plant for Jubail United Petro-chemical Company (UNITED), a manufacturing affiliate of SABIC. The plant will be designed to compress and purify around 1,500 tons per day of raw carbon dioxide coming from two nearby ethylene glycol plants. The purified gaseous CO2 will be pipelined through the piping corridor of the Royal Commission of Jubail to three SABICaffiliated companies for enhanced methanol and urea production. In summary, an estimated 500,000 tones of CO2 emissions will be saved each year. Linde Engineering Dresden will be responsible for the concept and basic engineering, front end engineering design (FEED) and detailed engineering, procurement and con-struction (EPC) of the facility to be completed on a fast-track schedule. Mechanical completion is set to be achieved in 2015. The plant is the first carbon capture and utilization (CCU) project of this size to be real-ized in Saudi Arabia. The reduction of CO2 emissions is an important aim in both SABIC's and Linde’s sustainability strategy. German - Saudi Business Magazine SABIC SABIC Europe BV is a SABIC subsidiary that includes all SABIC Polyolefin activities in Europe and employs nearly 6,000 people. Headquartered in Sittard, the Netherlands, SABIC Europe has a European wide network of sales offices and logistic hubs, as well as three petrochemical production sites in Europe: at Geleen (the Netherlands), at Teesside (United Kingdom), and at Gelsenkirchen (Germany). SABIC Deutschland was established in 1972 to support the strong growth of SABIC activity in the German, Austrian and Swiss market. It has currently 23 employees working in Germany. Based in Düsseldorf, SABIC Deutschland GmbH currently serves more than 300 various sized companies in the plastics sector. Most of the polyethylene and polypropylene is processed by SABIC’s customers into end products for the consumer market, mainly films for packaging, but also applications such as bottles, containers and pipes, as well as automotive parts. In Gelsenkirchen, SABIC Europe produces several grades of polyethylene and polypro-pylene. It is the main site for HDPE products in its bimodal HDPE plant. The logistical facilities in Gelsenkirchen are state of the art with an innovative technology in the high rise warehouse. Oil-To-Chemicals SABIC has announced plans to develop the Middle East’s first oil-tochemicals complex in the Kingdom. Construction works will be launched after the completion of feasibility studies. Competition is mooted for 2020. The project will be located in Yanbu at the Red Sea coast. It is expected to create 100.000 new jobs. Yanbu complex will be able to process 200,000 barrels of oil a day. When complete, a petrochemicals refinery will process crude and feed the produce into three steam crackers. One will crack NGLs and liquefied petroleum gas, while a second will crack naphtha and a third fuel oil. The product slate of the three crackers will include ethylene, propylene, butadiene, ben-zene, toluene and xylene. These will be fed into downstream processing facilities at the complex. Conservative budget estimates number the project to $ 30bn. SABIC has about $ 7.5bn-worth of projects under execution, including its $ 3.4bn elas-tomers joint venture with the US’ Exxon Mobile at Jubail, whereas Saudi ARAMCO has $ 30bnworth of petrochemicals schemes under execution in the Kingdom. The project would be the largest project ever realized in the Kingdom of Saudi Arabia. In fact, it would outnumber everything ever projected in the Kingdom two- or even threefold. Oil-to-chemicals technology entails crude oil entering the complex at one end and an extremely diverse product slate coming out the other. Processing 200.000 barrels per day would mean that between 50.000 to 80.000 additional barrels would be required every day to keep production running. Each $ billion invested in the downstream sector is producing four times more employ-ment than the same $ billion in the upstream side. SABIC is set to spearhead the region’s petrochemicals industry in its conversion to-wards a more diversified, downstream-based future. AHK Saudi Arabia - www.saudiarabien.ahk.de 11 German - Saudi Business Magazine Zamil Group Zamil Group Sahara & Sipchem Petrochemicals Co. Zamil Group dates back as an enterprise to the early 20th century, but it has established its core industrial base only in the seventies. The range of products the company produces spans air-conditioning manufacturing, plastics and steel abrication, paints, cranes and heavy process equipment. They are further engaged in shipbuilding and repair, port operations and maintenance, petrochemicals and chemicals, industrial investment and general construction. (Saudi International Petrochemical Company), and Sahara Petrochemical Company. Today, the company employs about 19,000 people in more than 60 countries. Zamil group has led the formation of major successful local petrochemical companies. These are Sipchem Sahara Petrochemicals Co. Sahara Petrochemicals Company (known as: Sahara) is a public company, listed on Tadawul since July 2004. Its biggest shareholder is Zamil Group with a 7.90 % share. 85.03 % are owned by the public. The firm is headquartered in Riyadh and employs about 500 people. Sahara Petrochemicals is involved in several downstream projects in partnership with major local and international firms. It has three joint venture production facilities that are located in Jubail Industrial City. The company further holds indirect stakes in five petrochemicals firms. Sahara operates within the materials sector focusing on commodity chemicals. Its sub-sidiaries manufacture propylene, polypropylene, acrylic acid, mixed acrylate polymer, ethylene, low and high density polyethylene, caustic chlorine and ethylene dichloride. 12 Sahara is based in Jubail, Saudi Arabia and was established in May 2004. Sahara Petrochemicals participates in the formation of some limited liability companies in Jubail Industrial City, as Joint Ventures with foreign companies to produce and market primary materials like propylene, polypropylene and polyethylene. It has the capacity to produce 467,000 tons of propylene per year in addition to 450,000 tons of polypropylene. German - Saudi Business Magazine Zamil Group Sipchem Saudi International Petrochemical Company (Sipchem) was established in 1999. It manufactures and markets methanol, butanediol, tetrahydrofuran, acetic acid, acetic anhydride, vinyl acetate monomer, as well as carbon monoxide through its various affiliates. Sipchem ranks among the top 17 companies in the Arab World in the category Petrochemicals. It has been listed on Saudi Stock Market since 2006. Sipchem serves its customers in the construction, solvents, automotive, electronics, polymer, coatings, and pharmaceutical industries. Following its success during the last decade, Sipchem expands by launching several down-stream projects to manufacture Ethylene Vinyl Acetate, Low Density Polyethylene, Ethyl Acetate, Butyl Acetate, Cross Linkable Polyethylene, and Semi conductive Compound that started in 2013. Saudi International Petrochemical Company (Sipchem) has chosen Jubail Industrial City to build its industrial complex for producing various chemicals because this city is con-sidered one of the leading industrial areas in the world having all necessary infrastructure for such 14 large projects. The availability of raw materials in the Eastern province, the presence of Saudi Aramco that supplies required feedstock at very competitive prices and in large quantities, the ease of export from the city via King Fahd Industrial Port and its relative proximity to South East Asian countries to which most petrochemicals are exported, are other reasons for this choice. The site of Sipchem occupies an area of over one million square meters in the basic industries part of Jubail Industrial City. Sipchem's strategy aims at integrating present and future petrochemical and chemical products to form a series of final added-value products in order to contribute to increasing the national production of Saudi Arabia. Sipchem announced that its affiliate the Sipchem Chemicals Company (LLC), has awarded an engineering design, procurement, construction, and commissioning (LSTK) contract for building a polybutylene terephthalate (PBT) Resin Plant to ThyssenKrupp Industrial (former ThyssenKrupp Uhde) company of Germany on 18 June 2013. The plant will produce PBT Resin with an annual production capacity of 63 thousand metric tons and will be located in Al-Jubail Industrial City. The estimated project cost is ap-proximately SR 600 million and the plant is expected to start full operations at the end of 2014. PBT resin is a highly specialized thermoplastic polymer used in manufacturing compounds in the automotive, the electrical, electronics and IT material industries. new PBT project will position the company as a global player in the polymers and engineering plastics industry. German - Saudi Business Magazine Ma’aden German - Saudi Business Magazine Henkel Polybit Henkel Polybit Industries Ltd. Henkel KGaA, leading solution provider for adhesives, sealants and functional coatings, entered into a joint venture agreement in 2005 with Polybit Industries Ltd, an established manufacturer of bitumen based waterproofing products in the UAE to form one of the largest companies manufacturing waterproofing and construction chemicals products in the GCC region. Ma’aden The Saudi Arabian Mining Company (Ma’aden) was formed by Royal decree in 1997 to facilitate the development of Saudi Arabia's mineral resources and was originally wholly owned by the Saudi Government before 50% of its shares were floated on the Saudi Stock Exchange (Tadawul) in 2008. Ma'aden has also developed its activities beyond gold with the development of Ma'aden Phosphate Company, which started production in 2011, its aluminium project which is currently under construction and a number of other projects. Ma'aden's exploration teams are working to expand available resources in existing business areas as well as to broaden the company's mineral portfolio. 16 Ma’aden created a Joint Venture with SABIC for building a phosphate and fertilizer production plant in Ras Al Zour, which is an important project for the Saudi petrochemical industry. The 5.6bn USD project is set out to produce 3 million tons of diammonium hydrogen phosphate (DAP), 400,000 tons of ammoniac and 200,000 tons of phosphoric acid annually. Another Ma’aden phosphate project, located in a new industrial city called Waad Al Shimal City, is anticipated to commence in 2016. Moreover, the company runs 18 mines in the country in which it extracts mainly gold, aluminum, phosphates and bauxite. ThyssenKrupp from Germany, one of the world’s largest steel producers, employing approximately 160,000 people in 80 countries, has been chosen to provide its ammonia technology for Ma'aden’s new ammonia plant II in close proximity to Ras al Khair sea port on the Persian Gulf. ThyssenKrupp also provides components and systems for the automotive industry, elevators, escalators, material trading and industrial services. The contract of ThyssenKrupp Industrial (former ThyssenKrupp Uhde), as subcontractor of Dealim, comprehends licensing, engineering, planning, and delivery as well as key equipment and technology. The new plant will be producing on a capacity of 3,300 tons starting from 2016. It will thus be one of the largest ammonia plants worldwide. A new dual pressure process, engineered by the plant engineering specialist ThyssenKrupp will be deployed in Ma’aden’s ammonia plant. This internationally unique technique ensures that the plant’s output is reliable and steady, and environment-friendly in addition. What is more, this technique allows single-train plants to produce 3,000 to 4,000 tons of ammonia per day. To date there are only two plants of this size in operation worldwide, with a third under construction. The world’s biggest ammonia plant is also operated by Ma’aden and went into service in 2011. All plants use the dual-pressure ammonia process and other technologies from ThyssenKrupp Industrial. “We are able to offer the latest technologies and best-in-class services to the customers in the fast moving and growing construction market in the region with the latest technical know-how from Henkel” says Naveen Antony, General Manager Sales. With manufacturing facilities in Umm Al Quwain (UAE) and Dammam (K.S.A.) with Sales offices in UAE, Qatar, Bahrain, Oman, Kuwait, and the Kingdom of Saudi Arabia, the conglomerate with over 1000 personnel across all departments is well represented in the GCC and North Africa. Competitive Advantage In addition to offering extensive range of waterproofing products, Henkel Polybit also provides complete system solutions for tiling, industrial as well as interior floorings, Polyurethane insulating foam chemicals, structural joint sealants and structural repair products. Roofcare, a subsidiary of Henkel Polybit, is one of the leading application contractors offering unique roof waterproofing/thermal insulation as well as external thermal insulation systems assuring state of the art application of high end products. “We provide real solutions because we manufacture all the products in our portfolio, unlike other manufactures in the waterproofing industry, who manufacture only limited products of certain categories and compliment it with an array of outsourced products,” explains Naveen Antony. “Being innovative and having a lean structure and strong customer orientation, strengthens our competitive edge and maintains our leading position. This approach, aligned with Henkel’s global sustainability strategy, is the driver for all new product developments in line with international and GCC green building codes.” Henkel Polybit’s technical service team works closely together with contractors, engineering & architectural consultants and authorities to ensure close customer communication and react quickly to international demands. market trends and “Our technical service team also conducts product trainings for consultants and specialised applicators to support them in understanding our product’s chemistry and scope of use” confirms Naveen Antony. Henkel Polybit Collaboration The Joint Venture (JV) is growing stronger and has enhanced the enterprise potential by leveraging the competence of Henkel in the Middle East & Africa region and implementation of international business practices. “We have had many synergies in the JV which has worked in our favor, the most prominent ones are in the promotion of Henkel products through our channels which resulted in the largest parquet flooring job in the Middle East for the tallest tower in the world today (Burj Khalifa). We have also had synergies in supply chain and logistics which has helped us to improve our efficiency in these domains. Working in a booming economy, the heady growth rates also tested the organization and stretched it to its limit to respond to market demands. Settling in with a JV where two different schools of thought strive to work together in such demanding situation was the biggest challenge”, says Naveen Antony. AHK Saudi Arabia - www.saudiarabien.ahk.de 17 German - Saudi Business Magazine Tasnee Petrochemicals German - Saudi Business Magazine Tasnee Petrochemicals plants are owned by TASNEE and Sahara Olefins Company and Basell Moyen Orient Investments. Tasnee has a further branch, the Saudi Acrylic Acid Company (SAAC) which is an integrated production complex, the only one of its kind in the Middle East. It produces various chemical products using hydrocarbon derivatives; 230.000 ton of Acrylic Acid and Butyl Acrylates, 340.000 ton of Butanol, and 80.000 ton of Superabsorbent Polymers (SAP). Tasnee Cristal Global Tasnee Petrochemicals The National Industrialization Company (TASNEE) was established in 1985 as the first joint-stock industrial company fully owned by the private sector. Tasnee made a net profit of 65 million USD in the three months ending September 30. Tasnee (National Industrialization Company) has a Polyether Polyol and Advanced Polyol and Derivatives plant under execution in Rabigh. The total investment for that project amounts to 106,600,000 US$. The plant shall produce 125,000 tons of polyol yearly. factory with an annual production capacity of 455.000 ton, which was, then, the largest of its kind worldwide, and the polypropylene (PP) factory with an annual production capacity of 450.000 ton. TASNEE has constructed TASNEE Petrochemical Complex in Jubail industrial city which consists of two projects: TASNEE owns 75% of SPC, whereas Basell ME Holding GMBH owns 25%, and production goes back to early 2004. The company has increased the annual production capacity of Polypropylene by 270.000 ton which lifts the total annual capacity of this factory to 720.000 ton of Polypropylene. Saudi Polyolefin’s Company (SPC) The Company has two integrated factories namely, the propylene 18 Saudi Ethylene and Polyethylene Company (SEPC) SEPC has a unit for production of ethylene and propylene and two unites for production of polyethylene, and propylene. The company’s annual production capacity is one million ton of ethylene, 285.000 ton of propylene and 400.000 ton of high density polyethylene (HDPE), and 400.000 ton of low density polyethylene (LDPE). Cristal Global is the world’s second largest producer of titanium dioxide and commercial and specialized titanium chemicals and environmental and personal care products. It is one of the leading companies in the area of titanium dioxide applications. Tasnee holds a majority stake of Cristal Globe. Cristal Globe is supervising operation of eight plants in five continents namely: Ashtabula in Ohio, Baltimore in Maryland, Salvador in Bahia, Stallingborough in the UK, Thann in France, Yanbu in Saudi Arabia, Bunbury in Australia and a mine site in Barabia, Brazil. The Company mainly focuses on the customer satisfaction and the technical research and development services. Saudi Acrylic AcidCo. (SAAC) Acrylic Acid Company is a Joint Venture between Tasnee and German Evonic AG. Evonic is one of the world’s leading specialty chemicals producers. It has been active in the MENA-region for more than forty years. Evonic has a 25 % share in the Joint Venture. SAAC is a subsidiary of Tasnee & Sahara Olefins (TSOC), which is owned by Tasnee and Sahara Petrochemicals. Distribution of the superabsorbers produced in Jubail in selected countries in the region will be undertaken by a marketing joint venture with SAAC, in which Evonic has a 75 % share. Production of ethylene/propylene goes back to August 2008, and production of HDPE started in November 2008, and that of LPDE in March 2009. The polyethylene two factories are the largest of their kind worldwide. The total investment cost of the whole complex is SR 9.5 billion. The AHK Saudi Arabia - www.saudiarabien.ahk.de 19 German - Saudi Business Magazine SADARA SADARA German - Saudi Business Magazine SADARA The SADARA Chemical Company is a Joint Venture of Saudi Aramco (65 %) and Dow Chemical Company (35%), established in 2011. In this Joint Venture, one of the world’s leading suppliers of energy is collaborating with one of the world’s leading science and technology companies. Sadara is constructing in Jubail Industrial City, Saudi Arabia, the world’s largest chemical complex ever built in a single phase, with 26 integrated world-scale manufacturing plants that will produce more than three million tons of diversified chemicals and plastic products every year. The complex will consist of a hydrocarbon and chlorine-based production facility. The facilities will be integrating the refining, chemicals and lubes for value addition and portfolio diversification of Aramco. Sadara will be a Fortune 500 company within the first year of full operation. The investment value for the project is set to $20bn. Producing such vast amounts of diversified chemicals and plastic products will enable SADARA to introduce new value-chains and high-performance products throughout the kingdom. Production of plastic and chemical products will start in the first half of 2015. 20 Chemical Company (Sadara) recently signed a long-term contract that will see Linde supply Sadara with carbon monoxide (CO), hydrogen (H2) and ammonia (NH3) at Jubail complex. Linde's Engineering Division will design, deliver and construct the new The complex will be, upon completion, among the largest fully integrated chemical plants worldwide. The output will generate an estimated $ 10bn in revenues within a decade of commencing operations. Sadara will be the first chemical complex to crack naphtha in the countries of the Gulf Cooperation Council (GCC). This advance will open the door to new specialty chemical plants and businesses in the Kingdom and take the Saudi chemical industry far beyond its existing commodity products. Cracking naphtha will make it possible to produce new intermediate products, which in turn will open up a whole new range of additional downstream opportunities. Sadara is on track to deliver its first products in the second half of 2015, with the complex in full operation in 2016, according to MEED. Product portfolio of SADARA will include, besides oil and gas chemicals, construction materials, cosmetics and shampoos, detergents and different kinds of elastomer products. The Linde Group stock company from Germany and Sadara turnkey gases facilities at Sadara's site in the Jubail 2 petrochemical cluster. The company will be building a two-stream HyCO plant, plus a single-stream NH3 unit producing waterless liquid ammonia. Linde will also install a large NH3 storage tank. The production units are scheduled to be ready in 2015. Once built, they will be operated by Linde's Gases Division. Linde is setting up a local gases company for on-site support. Sadara will use carbon monoxide, hydrogen and ammonia primarily for the production of aromatics, isocyanates (MDI and TDI), amines and hydrogen peroxide. Methylene diphenyl diisocyanate (MDI) and 2,4 toluene diisocyanate (TDI) are used in the production of polyurethanes an essential component in many products ranging from synthetic fibers through insulating foam and adhesives to mattresses and car seats. More than half of the products Sadara offers will be targeted for expanding Asia Pacific markets, while the majority of the remainder will be sold in other key growth countries in Central and Eastern Europe, Africa and India. AHK Saudi Arabia - www.saudiarabien.ahk.de 21 German - Saudi Business Magazine German - Saudi Business Magazine Evonik Industries Evonik, the creative industrial group from Germany, is one of the world leaders in specialty chemicals. Profitable growth and a sustained increase in the value of the company form the heart of Evonik’s corporate strategy. Its activities focus on the key megatrends health, nutrition, resource efficiency and globalization. Evonik benefits specifically from its innovative prowess and integrated technology platforms and is active in over 100 countries around the world. In fiscal 2013 more than 33,500 employees generated sales of around €12.7 billion and an operating profit (adjusted EBITDA) of about €2.0 billion. Evonik has been very successful in the Middle East and North Africa for more than four decades with offices in Egypt, Aman, Jeddah and Dubai. In view of its attractive geographical position between Europe and Asia and the plentiful supply of petrochemical feedstock in the Gulf States, Evonik regards this region as strategically important and intends to participate in regional growth and expand its presence constantly. 22 Evonik’s activities within the Kingdom of Saudi Arabia have been stepped up considerably in 2014, as the Superabsorbents 80 kt/a production joint venture with TASNEE and Sahara in Al Jubail came on stream and the sales and marketing activities for the whole Evonik product portfolio were bundled into the newly established Saudi Head quarters, Evonik Tasnee Marketing LLC (ETM), a joint venture between Evonik and Tasnee Marketing. ETM, which has just moved into its new offices located in the Business Gate in Riyadh is not only in charge of the sales of the Superabsorbents from the plant in Al Jubail to the baby diaper industry, but also for the technical marketing of important Evonik products for the animal feed industry as well as specialty chemicals and additives for the petrochemical, polymer and coatings industry. The ETM office is headed by General Manager Hassan Wardani, an Egyptian/German Industrial Engineer already experienced in representing German Chemical firms in the Middle East. He has been successfully building up the new joint venture in Riyadh in order to further strengthen Evonik’s market position in Saudi Arabia. Hassan is supported by a strong team of professionals with financial, customer service, sales and marketing backgrounds. They combine specialty product know- how with an understanding of the regional market and the Saudi business environment in particular. Hassan and his team very much look forward, together with local customers and partners, to continuing the long tradition of Evonik in Saudi Arabia by seizing further opportunities for the great solutions Evonik products offer.ease refer to our homepage for more detailed product information: http://www.evonik.com Kingdom of Saudi Arabia, Riyadh, address and contact details: Evonik Tasnee Marketing Company Ltd. Phone +966 11 210 7179 Fax +966 11 455 9854 Qurtuba Business Gate, Building C2 King Khalid International Airport Road 11496 Riyadh Saudi Arabia www.evonik.com Hassan Wardani (right), General Manager and Sulaiman M. AlKhereiji, Director Marketing & Sales AHK Saudi Arabia - www.saudiarabien.ahk.de 23 German - Saudi Business Magazine German - Saudi Business Magazine Middle East Company Middle East Company tonnes of stretch films according to B+K MEC's managing director, Yousif Al-Suwailem. 30% of the regular workforce come from Saudi Arabia; their colleagues are Lebanese, Filipinos, Indians, Bangladeshi, Egyptians and Sudanese. Freddie de Mey has been head of production since 2010. The Belgian national was previously employed as technical director at B+K France in Pont Audemer. However, he was already very familiar with the region thanks to working at B+K MEC from 2002 to 2004. In 2001, B+K MEC began producing printed tubular films for automatically packaging PE granules plus pallet protection films with 35 employees. To date, the plant offers the most state-of-the-art film production in the region. In addition, B+K MEC is the only local producer of stretch hood film. Leading role in the region B+K MEC joint venture very successful in Saudi Arabia 24 In the Arabian Peninsula region, B+K MEC is assuming a leading role in the plastic industrial packaging market. For over ten years now, the successful joint venture undertaken by German familyowned company Bischof + Klein and the two Saudi family-owned companies H. A. Al-Zamil & Bros. Co. and Al-Rajhi House Enterprises plus Ahmed A. M. Al-Ohali has been producing FFS packaging solutions on the basis of co-extruded films as well as stretch hood and shrink films. The company is based in Al-Khobar, not far from the Al Jubail industrial complex near to Dammam. A second plant is being planned in the Rabigh petrochemicals complex. “We are profiting from the petrochemicals industry’s strong growth and our outstanding reputation in the region”, explains Dr. Volker Pfennig, managing director of the B+K-GROUP. “Co-operation with the Saudi companies is outstanding. We are extremely satisfied.” Abdulaziz Al Zamil, the former chairman of the Royal Commission and one of the leading lights of the Kingdom’s industrialisation, is an honorary mem-ber of B+K MEC's advisory board. Since Saudi Arabia took the decision not only to extract its raw materials but also to further process them itself, the petrochemicals industry within the country has been booming. B+K MEC's biggest customer is SABIC (Saudi Basic Industries Corporation), which boasts various production locations. In addition to Saudi companies, B+K MEC also supplies numerous companies in the neighbouring states. So far, B+K MEC has carried out production on nine FFS lines and two machines for the Smart-Flex® stretch hood range. At the end of October 2011, two additional FFS film lines will enter operation. The company's annual capacity will then amount to 24,500 tonnes of FFS films and 5,400 The B+K-GROUP is a leading European full-service supplier of flexible plastic and paper packaging and technical films which boasts a strong worldwide network. In 2010, B+K employed a total of around 2,400 staff at six production plants in Germany, France, the United Kingdom, Poland and Saudi Arabia. The company generated turnover of around 450 million Euros. The B+K-GROUP’S product range encompasses the entire range of flexible packaging from traditional industrial packaging and consumer packaging to special films for technical applications. Bischof + Klein manufactures its products using the latest systems for m o n o / c o - e x t r u s i o n , gra-vure/flexographic printing, solvent-based/solvent free lamination and coating as well as for extrusion lamination and coating. Highly developed conversion technology with product-specific facilities for sealed, welded and adhesive designs enable individual production according to customers’ wishes. Bischof + Klein enjoys outstanding relationships with all customers within the local petrochemicals industry and is anticipating further growth. Dr. Volker Pfennig: “The region is developing into a crucial location for the production of PE granules. We wish to continue participating in this growth. At the same time, we are contributing towards the creation of jobs for the young, up-and-coming generation.” About Bischof + Klein Bischof + Klein (2010: 2,400 employees, turnover approx. €450m) is one of Europe's leading full-service suppliers of flexible plastic and paper packaging and technical films. The B+K-GROUP manufactures at six production plants in Germany, France, the United Kingdom, Poland and Saudi Arabia, and has a worldwide network of sales offices. B+K's product range encompasses the entire range of flexible packaging and technical films from traditional industrial packaging and consumer packaging to special films for technical applications. If you have any further questions, please contact: Gudula Benning Kommunikation Tel. +49 (0) 54 81/9 20 - 1 99 Fax +49 (0) 54 81/9 20 - 98 1 99 gudula.benning@bk-packaging.de AHK Saudi Arabia - www.saudiarabien.ahk.de 25 German - Saudi Business Magazine German - Saudi Business Magazine BASF The Chemical Co. At BASF, we create chemistry for a sustainable future. Our expertise spans 150 years, during which time the company has been committed to combining economic success with environmental protection and social responsibility. Through science and innovation, customers across various industries are able to meet the current and future needs of society while conserving resources, ensuring nutrition and improving the overall quality of life. BASF’s Innovation across Industries BASF’s petrochemicals division has amassed a huge amount of production and application expertise, supplying customers all over the world with sustainable and intelligent solutions. Thanks to its global presence, the division is represented in Europe, North America as well as the growing regions across Asia Pacific and South America. The petrochemicals division is at the heart of the unique BASF ‘Verbund’ and the cornerstone of the petrochemicals value chain. The petrochemicals division produces and sells an extensive range of high-quality basic and industrial chemicals and products tailored to the specific needs of customers. These are used to manufacture a variety of products including PET-bottles, antifreezes, coatings, superabsorbent polymers, and cling film. BASF’s main products in this area include crackers, PVC and plasticizers, alcohols and oxygenated solvents, industrial gases, and alkylene oxides and glycols. Most of these performance enhancing products contribute to quality and strength in other manufacturing processes and end-products. The Chemicals segment includes basic chemicals and intermediates. Its portfolio ranges from solvents, plasticizers and high-volume monomers to glues and electronic chemicals as well as raw materials for detergents, plastics, textile fibers, paints and coatings, plant protection and pharmaceuticals. In addition to supplying customers in the chemical industry and numerous other sectors, BASF also ensures that other BASF segments are supplied with chemicals for producing downstream products. BASF’s Performance Products lend stability, color or improved application properties to many everyday items. The portfolio includes vitamins and other food additives as well as ingredients for pharmaceuticals and for hygiene, household, cosmetic and personal care items. Other products from this segment improve processes in the paper industry, oil and gas production, mining and water treatment. They help enhance the efficiency of fuels and lubricants, the effectiveness of adhesives and coatings and the stability of plastics. BASF’s Functional Materials and Solutions segment offers bundle system solutions, services and innovative products for specific sectors and customers, particularly for the automotive, electrical, chemical and construction industries. The portfolio comprises of catalysts, battery materials, engineering plastics, polyurethane systems, automotive and industrial coatings and concrete admixtures as well as construction systems such as tile adhesives and decorative paints. These solutions are also beneficial in household applications and for sports and leisure. The Agricultural Solutions segment provides innovative solutions in chemical and biological crop protection as well as seed treatment and solutions to manage water, nutrients and plant stress. BASF’s research in plant biotechnology aims for greater efficiency in agriculture, better nutrition and use as renewable raw materials. The company focuses its exploration and production on oil and gas-rich regions in Europe, North Africa, South America, Russia and the Middle East. Together with their Russian partner Gazprom, BASF is active in the transport, storage and trading of natural gas in Europe. 26 In the Natural Gas Trading business sector, sales were above the level of the previous second quarter. Lower gas prices were more than offset by higher volumes. Because of sharply falling gas prices on the European spot markets for gas, we were able to optimize our procurement portfolio and considerably increase. We emphasize on sustainability Constant innovation is vital to BASF’s success and its sustainable solutions. The company’s sustainable management focusses on minimizing risks, optimizing business opportunities and stakeholder engagements. Globally, we are also committed to establishing uniform standards for environmental, safety, security, health and labor standards. In line with this, BASF was recognized in the Dow Jones Sustainability Index in 2013 for its risk management system. BASF integrates and diligently adheres to sustainable criteria into its processes. Using a data-based, lifecycle monitoring approach, we assess impact of our projects and solutions. Across the company, we encourage sustainability on a daily basis by helping employees contribute to resource optimization, conducting information sessions, and facilitating constructive dialogue between all stakeholders. The company also participates in the ‘Together for Sustainability’ initiative with leading chemical companies in order to establish global standardization of supplier evaluations and auditing. BASF’s commitment to Saudi Arabia Saudi BASF is part of the Germanyheadquartered multinational BASF the Chemical Company. Saudi BASF was incorporated in January 2001, when it started operations and production of construction chemicals in the Second Industrial Area in Dammam. Saudi BASF plays an active part in the Saudi construction landscape, supplying construction chemicals to mega-projects including the two holy mosques in Makkah and Madinah, the building of the King Abdul Aziz International Airport in Jeddah, King Abdullah Economic City, the Maaden Aluminium Smelter in Ras Al Khair. BASF also supplies products to prominent clients such as the Royal Commission for Jubail and Yanbu. AHK Saudi Arabia - www.saudiarabien.ahk.de 27 German - Saudi Business Magazine Alhamrani-FUCHS Alhamrani-FUCHS Petroleum Saudi Arabia Ltd. Alhamrani Group has begun to operate in the lubricating sector in 1979. In 1988 they established oil and lubricants blending plant. Since its inception, the Group has become a key player in this sector. In 1995, a joint venture was formed between the Alhamrani Group and Fuchs Petrolub AG (Germany), the world’s largest independent producer and distributor of high standard lubricants. Since then, the group has established itself as one of the largest oils and lubricants companies in Saudi Arabia. Alhamrani Fuchs-Petroleum Saudi Arabia Ltd., owns a modern industrial complex in Yanbu on an area of 10,000 square meter, the largest of its kind in the Middle East and Africa, with an annual capacity 160,000 metric ton of oils and lubricants. It manufactures a complete range of premium lubricants and other specialties according to the world's highest standards. AFPSA Plant in Yanbu. Al Sinayiah acquired quality certificates ISO-9001:2008, ISO-14001:2004 and OHSAS 18001:2007. Fuchs focuses on quality and customer service. There are several synthetic lubricants which serve the local industries and vehicle owners. More than 41 service centers (One Stop) are available in Saudi Arabia serving the customers directly. Industrial Sector Wide customer base consisting of more that 600 industrial customers. Serving special industries like Petrochemical, Fertilizer, Cement, Construction, Building Materials, Crusher Plants, Haulage Fleet, Power Generation Co’s, Agriculture, Railways and Food Industry. Product Range • Gasoline Engine Oils • Gear & Transmission Oils • Hydraulic Oils • Industrial Oils • Diesel Engine Oils • Marine Oils • Greases • Antifreeze Coolant • Specialty Products Fuchs Launches Full Range of Synthetic Products JEDDAH Fuchs Oils’ ‘Keep Going’ campaign has moved into the second phase, offering four winners the chance to fly to Brazil with their ‘Titan Supersyn’ oil. This follows the success of raising awareness about Fuchs oil in the initial stage in which four winners were selected to attend the Barcelona and Manchester City match in the European Champions League, as well as spend three nights in Barcelona. Ayman Darandary General Manager Marketing at Alhamrani-Fuchs Petroleum Saudi Arabia Limited manufacturer of Fuchs oils, said that the new campaign will pick four people who will travel to Brazil for a 3-night stay, and thus get a chance to watch a World Cup match. Participation in the competition is open to everyone who enters the campaign pages on social networking sites as their names are automatically entered into the contest upon logging in. It is valid until May 25, 2014. “The success of the first part of the ‘Keep Going’ campaign especially in raising awareness about Fuchs oils, particularly the ‘Titan Supersyn’ oil range encouraged the company to release the second part for the World Cup”, Darandary noted. 28 German - Saudi Business Magazine Alhamrani-FUCHS “By launching the campaign, Alhamrani-Fuchs Petroleum Saudi Arabia Limited aims at rewarding users of ‘Titan Supersyn’ oils and promoting it as the first option for customers in the Saudi market”, Darandary further said. “The company will continue to produce oils of highest international standards to meet the needs of customers looking for strong performance and protection for their cars, as well as ensuring that Fuchs oils, the quality German oils, stay as an ideal option for all tasks”, he added. ‘Titan Supersyn’ oil is available in four different types to suit different types of engines, whether American, European or Japanese. ‘Titan Supersyn’ oils feature high performance and extended use for a distance upto 15,000 km and high level of fuel economy. ‘Titan Supersyn’ oils are recommended for use in all passenger cars powered by gasoline. It also provides excellent protection against friction under all operating conditions, and prevents sedimentation in naturally aspirated or turbo charged engines, friction and wear will also be substantially reduced, contributing to low maintenance cost. ‘Titan Supersyn’ oils are environment friendly too. AHK Saudi Arabia - www.saudiarabien.ahk.de 29 German - Saudi Business Magazine German - Saudi Business Magazine degreasing and protection of surfaces against abrasion, wear and corrosion. OKS products reduce assembly times, make disassembly easier, increase the service life of components, extend the maintenance cycles of plant and machinery, etc. With its “Speciality Products”, OKS supplies a range of products that meet the specific requirements of certain user groups and industries, such as e.g. speciality lubricants for food processing industry or dry lubricants like bonded coatings. Environment and product safety OKS Spezialschmierstoffe GmbH Experts in Chemo-technical Speciality Products For more than 35 years OKS Spezialschmierstoffe GmbH, Germany, has produced speciality lubricants and chemo-technical products for applications in commercial and industrial maintenance and repair operations. The company’s business model is based on a close cooperation with distribution partners in more than 50 countries, selling engineering supplies and mineral oils. OKS is a subsidiary of Freudenberg Chemical Specialities SE & Co. KG, which in turn is a business unit of the Freudenberg Group. 30 Product Portfolio The OKS “Chemo-technical Products for Industrial MainThe company’s product portfolio tenance and Repair consists of roughly 150 tandardised, high-performance products for the reduction of friction, wear and corrosion, as well as several customer-specific products. A range of anti-spatter agents for the welding technology sector completes the portfolio. The product portfolio of OKS is essentially divided into two business divisions focusing on specific application areas and customer requirements. “Operations”, offer customers in the field of manufacturing, processing and plant engineering industries with a large variety of lubricating products such as pastes, oils, greases, corrosion protection and maintenance products, cleaners and welding agents. This range provides plant engineers, equipment operators, craftsmen, maintenance professionals and processing engineers with the products they need for cleaning, Environmental protection and user safety are of great importance to OKS. The company’s Material Compliance Management system ensures compliance with all global standards and legal requirements in this area. Technical expertise The world of lubrication technology changes fast. This can be attributed to increasing demands from customers relating to efficiency, economy and reliability, as well as requirements for improved environmental compatibility, easier and lower-cost disposal of used products and compatibility with modern materials such as ceramics and plastics or legal requirements. Close collaboration between the in-house development and production departments ensures that OKS can rapidly implement new technologies as innovative marketready products. Strong partnerships with specialised dealers Supply to market is provided through highly specialised partners such as Saudi Arabian Al Suroor United Group (ASUG), the OKS distribution partner for the Gulf Cooperation Council. Being one of the leading engineering procurement group specialized e.g. in services & facility management, civil structural, mechanical & piping works, electrical, instrumentation & process control and services to petrochemi- cal, oil and gas industries and associated services to other industrial sectors, Al Suroor is the perfect partner to market OKS speciality lubricants and maintenance products to industrial customers in the region. The extensive education and training provided by OKS professionals to Al Suroor ensures that excellent technical support and problem-solving expertise is available on the spot. OKS offers a comprehensive programme of training courses and seminars for its partners so that they are able to support customers competently even in relation to the most complex application requirements. Since 1989 Al Suroor United Group has served an impressive array of clients in diverse field of operations also with OKS products, amongst others crane lubrication in the steel industry, mould release in the plastic industry and corrosion protection in refineries. For further information please visit www.oks-germany.com and www.alsuroor.com AHK Saudi Arabia - www.saudiarabien.ahk.de 31 German - Saudi Business Magazine ZEPPELIN ZEPPELIN Systems Gulf Company Ltd. The ZEPPELIN Group is a company with more than 100 years of tradition. The roots go back to the founder of the Airship Technology Ferdinand Count Zeppelin. Today the Zeppelin Group employs more than 6600 people at 190 locations worldwide and achieved sales of Euro 2.45 billion in the financial year 2011. Zeppelin is the provider of leading technology products in the markets served, and of the best service for these products. Zeppelin delivers to its customers the highest added value in the industry, enabling them to reinforce their own competitive strength. ZEEPELIN Systems is the world market leader in the development, production and construction of systems for handling (storage, conveying, mixing, dosing and weighing) of high value bulk materials. Headquarter is located in Friedrichshafen Germany with approx. 1100 employees, working out of 19 subsidiaries worldwide. Zeppelin Systems supplies plants to the Polymer, Plastics Processing, Rubber and Tire, Food and Liquids Processing Industry. The GCC countries especially Saudi Arabia is an important market for Zeppelin Systems to supply bulk material handling plants. One of the main products supplied with this plants are large Aluminum Silos and Blenders to store bulk materials such as polymer powders and pellets, general chemicals as well as raw materials for the Food Industry. In the past the silos had to be built directly on the customer site because the silos were shipped in parts and welded together on site. Already in 2006 Zeppelin Systems decided to execute an order containing more than 50 large silos and 20 km of piping not on German - Saudi Business Magazine ZEPPELIN customer site. For this project Zeppelin Systems established a manufacturing facility directly in Saudi Arabia along the Dammam – Jubail Highway to build the large silos and do the pipe prefabrication. This set up was appreciated by the local industry in Jubail area and orders for new projects where secured. ZEPPELIN SYSTEMS GULF CO. Ltd. has been established in 2008 to serve the Polymer- Plastics Processing- and Food Industry in Saudi Arabia and the GCC countries for Bulk Material Handling Systems, Pneumatic Conveying Systems and Silo Technology including Erection Work. Zeppelin Systems Gulf Co. has established a state of the art fabrication facility in Saudi Arabia Dammam – Jubail Highway, which is the first and only facility presently available in the whole Middle East to work as a local partner to the industry. The production range includes Silos and Blenders up to 2000 m³ and larger in aluminum as well as prefabrication of Piping in aluminum or stainless steel in accordance to DIN, ASME or by buyers specification. To ensure reliable operation of the supplied plants Zeppelin Systems Gulf Co. provides local Service and Maintenance to the customers. A range of spare parts are kept on stock. In 2011 permanent office buildings where constructed to better suit our customers. A new branch Zeppelin Systems Gulf “Industrial Services” starts in 2012 and is offering Welder Training, Welder Certification and non destructive material testing such as X-Ray, Ultrasonic and Colour Penetration. New class rooms and welding cabins where installed in the premises for first class welder training. The company is headed by German Management to ensure the high German Quality Standards to the market. With these new investments Zeppelin Systems Gulf Co. has committed itself long term to the market in the Kingdom. Contact: P.O. Box 1495, Al Jubail 31951 Kingdom of Saudi Arabia www.zeppelin-systems.com www.zeppelin-gulf.com Tel: +966(0)5 491 01071 E-Mail: zeppelingulf@zeppelin-gulf.com 32 AHK Saudi Arabia - www.saudiarabien.ahk.de 33 German - Saudi Business Magazine CHEMANOL Methanol Chemicals Company Ltd. (former Saudi Formaldehyde Chemical Company Limited) is a closed stock company formed by Saudi Arabian and GCC investors in 1989. Today, the company is completely Saudi-owned. Its main manufacturing site is located in Jubail Industrial City. The company is engaged in manufacturing 13 premium grade Methanol Derivatives, such as Aqueous & Urea Formaldehydes, Formaldehyde derivatives, super plasticizers and various Amino resins, which have diverse applications including as agricultural fertilizers, pharmaceuticals, solvents, intermediates, lami-nates / wood industry, plastics, paper and the production of various types of concrete admixtures. Chemanol’s business model is based 34 on utilization of the Kingdom’s natural hydrocarbon resources to achieve substitution of imports by establishing petrochemical units to manufacture downstream products and the implementation of export oriented projects using the industrial infrastructure. Chemanol exports roughly 83 % of its products to more than 50 countries, including Germany. The company currently has a production capacity of 76,000 tons. In the year 2012, a newly built plant started production. Its capacity has grown to more than one million tons of Methanol and Formaldehyde and their respective derivates. Its production of Methanol is mostly being used as self-supply for the production of downstream petrochemicals. CHEMANOL German The HELM AG is the exclusive marketing partner for Dimethylformamide for the manufacturer Chemanol in Saudi Arabia since 2009, marketing approx. 60,000 tons of per year. The principal feedstocks for DMF are methanol, ammonia and carbon mon-oxide. Chemanol announced in 2013 a plan to build a new production plant for specialty chemicals in the Western Region. The company's board has also approved construction of a new 60,000 mtpa sulphonated naphthalene formaldehyde plant at Jubail. The SAR75m ($20m) Jubail plant was started to being constructed in 2013, with commercial operations expected to be launched in 2015. German - Saudi Business Magazine Linde Linde Engineering Technology leadership, Execution excellence and a lifetime commitment in every step of the way In the 2013 financial year, The Linde Group generated revenue of EUR 16.65 bln, making it the world's largest gases and engineering company with approximately 63,500 employees working in more than 100 countries worldwide. The Engineering Division is a leading technology partner in turnkey EPC projects worldwide. Its global success has been built over decades on its core technologies, extensive process engineering expertise, German precision in the planning and execution of turnkey projects. We are focused on vey strategic and promising market segments, natural gas treatment including NGL and LNG, petrochemical plants in particular olefins and polyolefins, industrial gases as well as hydrogen and synthesis gas.. Process plants are some of the largest and most sophisticated building structures ever built. And only a selected numbef contractors are capable of designing and constructing them. With more than 1,000 process engineering patents and 4,000 completed plant projects, Linde is 36 among those leading international plant contractors. Linde is significantly strengthening its activities in the Middle East and North Africa region in order not only to meet but also exceed the needs of its customers in this rewarding market. With its regional Headquarters in Abu Dhabi, Linde has responded to significant opportunities offered by the Kingdom of Saudi Arabia, by establishing strong companies in the Kingdom with offices in Riyadh, Al-Khobar and Al Jubail, in close proximity to key customers such as Saudi Aramco, SABIC and Tasnee and their assets. One of the recent success stories is the long-term contract between the Linde Group and Sadara Chemical Company (Sadara), the world's largest chemical complex ever built in a single phase. "Linde Group's unique value proposition is well demonstrated here where Linde Group has invested USD 380 million in this HyCO facility for the production of CO and H2 plus an ammonia plant. Linde's Engineering Division has designed and is building the plant and once completed Linde Gases Division will be operat- ing the plant and supplying Sadara with carbon monoxide (CO), hydrogen (H2) and ammonia (NH3). A true seamless integrated solution." stated Ali Vezvaei, President of Linde AG Engineering, Middle East & North Africa. Sadara, established in October 2011, is a joint venture developed by Saudi Arabian Oil Company (Saudi Aramco) and The Dow Chemical Company (Dow). Linde's Engineering Division will design, deliver and construct the new turnkey gases facilities at Sadara's site in the Jubail 2 petrochemical cluster. The company will be building a two-stream HyCO plant, plus a single-stream NH3 unit producing waterless liquid ammonia. Linde will also install a large NH3 storage tank, resulting in a sophisticated supply concept which will enable the plant to run smoothly and reliably at all times. “This contract is an excellent opportunity from several perspectives,” stated Professor Dr. Aldo Belloni, Member of the Executive Board of Linde AG. “It is Linde's largest on-site petrochemical project in this German - Saudi Business Magazine Linde region. It once again demonstrates our position as a global leader in the generation and supply of carbon monoxide for MDI and TDI production plants at integrated chemical hubs. The petrochemical industry is expanding rapidly in Saudi Arabia. We expect that this growth will give added momentum to the expansion of our gases and engineering business in the Middle East.” The production units are scheduled to be ready in 2015. Sadara will use carbon monoxide, hydrogen and ammonia primarily for the production of aromatics, Isocyanates (MDI and TDI), amines and hydrogen peroxide. Methylene diphenyl di-isocyanate (MDI) and 2,4 toluene di-isocyanate (TDI) are used in the production of polyurethanes an essential component in many products ranging from synthetic fibers through insulating foam and adhesives to mattresses and car seats. Sadara will construct, own and operate a world-scale integrated chemicals complex in Jubail Industrial City II in Saudi Arabia. Sadara will have a differentiated product mix, most of which are produced locally for the first time. This will create further growth opportunities for conversion and downstream industries in the adjacent PlasChem Park. In 2013, Linde Engineering in Saudi Arabia was awarded a contract to build the world’s largest carbon dioxide (CO2) purification and liquefaction plant for Jubail United Petrochemical Company (UNITED), a manufacturing affiliate of SABIC (Saudi Basic Industries Corporation). The plant is located in Jubail Industrial City, Saudi Arabia. It will be designed to compress and purify around 1,500 tonnes per day of raw carbon dioxide coming from two nearby ethylene glycol plants. The purified gaseous CO2 will be transported through the piping corridor of the Royal Commission of Jubail to three SABIC-affiliated companies for enhanced methanol and urea production. Methanol is a basic component for the chemical industry and urea is used for fertilizer production. Furthermore, it will be capable of producing 200 tonnes per day of liquid CO2 with food grade quality which will be stored and thereafter supplied by truck to the food and beverage industries. Linde Engineering has been in the lead all the way from the concept phase, and front end engineering design (FEED) to basic and detailed engineering, procurement and eventually construction (EPC) of this complex facility that is expected to achieve Mechanical Completion in 2015. “This is a true demonstration of SABIC's and Linde's commitment to sustainability as a main strategic pillar for future growth. We are proud to be SABIC's technology partner of choice in this prestigious project.” Said Mr. Vezvaei. An estimated 500,000 tonnes of CO2 emissions will be captured and reused each year once the plant is in operation. In addition, the Linde Gases division acquired 51% of the shares in the Saudi Arabian industrial gases company SIGAS (Saudi Industrial Gas Co. Ltd). The transaction was completed in January 2009 following receipt of approval from the relevant Saudi Arabian regulatory authorities. The family-owned company SIGAS is the second largest industrial gases company in Saudi Arabia. With several projects, operations and plans in the kingdom, Linde has demonstrated its strong focus and commitment to the Kingdom's Oil&Gas and Petrochemical industries, while once again underpinned its leading position as a technology provider and EPC contractor of choice. www.linde-engineering.com AHK Saudi Arabia - www.saudiarabien.ahk.de 37 German - Saudi Business Magazine ThyssenKrupp AG in Saudi Arabia ThyssenKrupp AG in Saudi Arabia For more than 6 decades, ThyssenKrupp has been active in Saudi Arabia with own subsidiaries and branches in Riyadh, Jeddah, Al Khobar. Our Steel, Stainless Steel and Materials Business Areas serve our customers with a wide range of material solutions, ranging from carbon- and stainless steel, tubes and pipes to nonferrous metals and plastics. Combining project management expertise, global connections, specific market knowledge and comprehensive services, our Materials Services/ThyssenKrupp Materials International supplies customers throughout the world with metals, alloys, minerals, industrial gases and coke. We also provide innovative technical and infrastructure services in railway equipment, civil engineer- 38 ing, port construction, plant and steel mill services covering all aspects of industrial production. A recent reference here is the supply of material and equipment for the North-South Railway project. Our portfolio also includes consultancy and planning services, equipment hire, customer and spare parts services as well as installation, maintenance and repair of machinery, plant and technical structures. Our Elevator Technology Business Area is active in the area of passenger ransportation systems. Its range includes passenger and freight elevators, stationary and mobile escalators, moving walks, passenger boarding bridges as well as stair and platform lifts. In addition to systems for the volume market, the portfolio also includes custom solutions as well as service, maintenance and modernization packages precisely tailored to customer requirements. Some recent references are the Mecca Clock Tower, Al Haramain Train Station, VIP Mobile Escalators for Saudi-Airlines, Princess Nora University, Unite Towers and The Nation Tower. Our innovative TWIN is the first elevator system to have two cabs German - Saudi Business Magazine ThyssenKrupp AG in Saudi Arabia running independently one above the other in the same shaft. This technology has many advantages over conventional elevator systems, including the fact that waiting and travel times are reduced to a minimum thanks in part to the use of an intelligent destination selection control system. In addition, the higher capacity allows the number of shafts needed to be reduced by up to a third, freeing up additional useful space in the building across all floors. This innovative solution has been installed in the CMA Tower. In our Business Area Plant Technology, which includes the planning and construction of chemical plants, refineries and other industrial plants, equipment for the cement and minerals industry, machinery, plant and systems for the mining, processing, handling and transportation of raw materials and minerals? ThyssenKrupp Polysius is a strong partner of the cement and minerals industry, offering project elaboration, engineering and design, shipment, field assembly and commissioning, as well as comprehensive service activities, for complete production lines, individual products, plant conversions and upgrades. Numerous cement producers in Saudi Arabia, Yamama Cement Co. and Eastern Province Cement Co. now rely on our technology and innovative solutions. The experience of ThyssenKrupp Foerdertechnik in the mining, materials handling and mineral processing industries makes us the partner of choice from planning to operation. Numerous plants have been engineered, supplied and installed at sites of Riyadh Cement Co., Al Safwa Cement Co., Southern Province Cement Co., Saudi Cement Co. and Yamama Cement Co. With the construction of the world’s two largest ammonia plants for our customers Safco and Ma’aden, ThyssenKrupp Industrial has succeeded in improving its clients’ reputation with their as yet unbeaten capacity record. Furthermore, it is represented in the Saudi Arabian market with proprietary technologies (polyester, electrolysis, ethylene dichloride) and other products. In addition, ThyssenKrupp Industrial has also invested in yet more on-site competence in the form of local organizations and international partnerships which enable us to keep up with the ever-increasing number of customers on the world market. Depending on the project and the requirements of the customer, we find tailor-made solution for collaboration with local and international suppliers and engineering partners. These services cover our entire range from the initial concept drafting, process orientation, and basic and detail engineering packages to turnkey completion of the plant. As a process-oriented company, we combine the technical expertise from our wide range of processes with innovation and value engineering. Our special brand of corporate performance and efficiency is based on the fact that the company can offer complete process chains in many technological fields and has consequently accumulated a wealth of experience in dealing with process-related tasks. As an experienced plant construction company, ThyssenKrupp Plant Technology is well equipped to ensure success and can rely on the extensive competence of its diverse technical divisions and our local organizations to provide intelligent solutions. Moreover, the team spirit of our motivated, highly qualified employees guarantees optimum service for our customers in Saudi Arabia. AHK Saudi Arabia - www.saudiarabien.ahk.de 39 German - Saudi Business Magazine Lurgi German - Saudi Business Magazine Lurgi Lurgi Saudi Arabia Solutions for the Middle East the in-house Lurgi sulfur management technologies. Through a constant operational feedback within our Group, we continuously optimize our processes and provide innovative solutions, which are tried and tested. Genuinely committed to innovation by constantly enhancing its comprehensive portfolio of proprietary technologies. Over the years, we have developed proven project execution processes and tools across the entire project Present since decades in the Middle East, and very well know via its Lurgi brand (Lurgi was integrated in Air Liquide in 2007) Air Liquide Global E&C Solutions has the requisite operational and industrial experience, and a global understanding of your challenges in monetizing natural gas. Based on your specific Your Challenge Our Solution Raw Natural Gas CO2/H2S/COS 40 • More than 170 Lurgi Claus® plants • More than 40 Lurgi OxyClaus® burners • More than 60 Lurgi tail gas treating® processes • More than 50 Aquisulf ® plants environment and objectives, we create customized solutions based on our wide portfolio of natural gas conditioning technology. Natural gas is a growing energy source at the same an abundant feedstock. Natural gas offers diversified gas usages, such as LNG as well as downstream products (MeOH, MTP, DME). Since a lot of new sources of natural gas are sour and its composition varies widely, an appropriate treatment and processing is essential, defined to clients’ needs according to the mixture of impurities. Amine Units Membranes (Medal) Mercaptans Purisol Molsieves H2S Lurgi Sulfur Management N2 He Cryogenic Purification Omnisulf One stop shop We have contracted: lifecycle. We have gained a significant amount of experience in projects involving a variety of scenarios, from high-value projects and EPC (Engineering Procurement Construction) scenarios, to complex designs involving multiple technologies. One Stop Shop Air Liquide Global E&C Solutions is a premium strategic partner and a world leader in engineering and construction, able to meet constantly growing customer needs and to exceed their expectations through creative, safe, reliable and competitive solutions with an optimum balance of investment and operating cost, and with efficient project management. Our references up in 2011 with a capacity of 1,577 MMSCFD of raw sour gas. The challenging part was not only to remove carbon dioxide and H2S; rather, in addition mercaptans and carbonyl sulfide (COS), present in levels too high to be processed in the downstream liquefaction unit had to be removed first. Proven technology Air Liquide Global E&C Solutions supplied the integrated natural gas processing concept OmniSulf®, including the acid gas removal, sulfur recovery unit, Lurgi Tail Gas treatment® and Aquisulf®. This allows to guarantee a sulfur recovery of more than 99.9% for the whole complex. Our design achieves less than 1ppm COS in the product gas as well as 10 ppm CO2 and 2 ppm of H2S. The client’s challenge is to ensure that the end product specifications as well as environmental requirements are met. The world’s largest LNG plant in Qatar uses our gas treatment technology. The latest train started In its own plants Air Liquide is operating its own SRU (Sulfur Recovery Unit inoperational), using Air Liquide Global E&C Solutions offers products that fit each client’s challenges, relying on or knowledge and capabilities across the entire gas treatment value chain. Contact information: Grégoire Nollet, Grégoire Nollet Vice President, Middle East, India Zone, Air Liquide Global E&C Solutions, www.engineeringsolutions.airliquie. com. The YASREF Refinery Project involves the construction and operation of a 400,000 barrel per day (bpd) integrated petroleum refinery in the Yanbu Industrial City located on the west coast of Saudi Arabia along the Red Sea, and Air Liquide Global E&C Solutions currently provides to its client Air Liquide Arabia project execution and process technology and equipment for the HGU (Hydrogen Generation Unit) Plant to supply YASREF with the required H2. Beginning of 2014 Air Liquide Global E&C Solutions got the order to license an Acid Gas Removal Unit in Jazan Area to reduce pollutants hazardous to environment and further production. The plant is planned to be operational 2016. AHK Saudi Arabia - www.saudiarabien.ahk.de 41 German - Saudi Business Magazine EEW Global Pipe Co. Progress originates from the willingness to face challenges with farsightedness. This attitude made the German company Erndtebruecker Eisenwerk GmbH & Co. KG (EEW) to one of the world’s leading specialists for the production of longitudinal submerged arc welded (LSAW) pipes. Since the foundation in 1936, the EEW Group has expanded considerably with four production facilities in Germany and further mills in Korea, Malaysia and Saudi Arabia, EEW is today in the position to produce 800.000 tons of steel pipes per year. Saudi Aramco as well as all major companies operating in the oil and gas business put their trust in products of the still familyrun company. The youngest member of the EEW Group is the EEW Global Pipe Company (EEW GPC) in Saudi Arabia. EEW GPC was founded in late 2010, when EEW decided to break into a new market segment. Besides the traditional business in the process and offshore construction industry, EEW planned to strengthen its activities in the pipeline industry. Jubail Industrial City, Saudi Arabia, was considered as an ideal location for the establishment of a pipe mill which is specialised in the production of line pipes for the oil, gas, petrochemical, power generating and civil engineering industries. Christoph Schorge, associate of EEW and vice president of EEW GPC points out the competitive advan- 42 tages of EEW GPC as follows: ‘EEW Global Pipe Company is the first manufacturer of LSAW pipes in the Middle East which is able to offer line pipes up to 50.8 mm wall thickness. Our location in Jubail enables us to serve the attractive line pipe market of the MENA region. Moreover, we are close to Saudi Aramco, one of our most important customers’. With Saudi Steel Pipe Company, Pan Gulf Holding and Mr. Ahmed Al-Khonaini, EEW has found perfect partners for the successful realisation of the Saudi-German joint venture. The total investment volume for the project exceeded 176 Mio. USD. This investment was necessary to set up a state-of-the-art production facility. ‘To be competitive in the pipeline industry, efficiency has highest priority. Therefore, it was essential to establish a pipe mill equipped with most modern machinery which enables the production of large lots. Most of the machinery was provided by German mechanical engineering companies with whom EEW maintain close relationships’, explains Christoph Schorge. Besides Germany, the joint venture ‘EEW GPC’ was also supported from Saudi Arabian side. ‘Both of us, our Saudi Arabian partners and we were glad that the Saudi Industrial Development Fund (SIDF) helped us to launch the new pipe mill. Without their financial support, it would have been very difficult to realise a project of this size in Saudi Arabia’, Christoph Schorge continues. After the foundation in late 2010, the first pipes were already produced at EEW GPC in spring 2013. According to Christoph Schorge there are two main reasons why EEW GPC was able to become operational in such a short time: ‘On the one hand, we have three strong Saudi Arabian partners who are familiar with the local conditions. On the other hand, the EEW Group disposes of a strong international network which could provide the appropriate technical know-how and skills.’ In the meantime EEW GPC successfully gained all certifications which are necessary for the production of LSAW pipes as well as the Saudi Aramco approval ideal preconditions to cover shortly the 200,000 tons annual production capacity of EEW GPC. German - Saudi Business Magazine LISEGA Arabia Co. Ltd. LISEGA Arabia Co. Ltd. The first and only pipe supports manufacturer and field services provider in the Kingdom LISEGA Arabia is a joint venture between Saudi-based Company Kinetic Energy Factory Company “KEKSA” (Saudi Aramco approved manufacturer and contractor) and LISEGA SE (Germany), the world’s market leader in pipe supports. LISEGA SE, headquartered in Germany with subsidiaries in France, UK, USA, and China, has over 50 years of experience in pipe supports for major plant engineering and construction. The company’s superior design and technology for pipe support products have applications in the power, chemical and petrochemical industries, thermal power plants, incineration plants and similar facilities. LISEGA’s trade- 44 mark software, design, and modular system have a reputation for ensuring significant cost-savings for each installation. KEKSA is a subsidiary of the engineering services company AMCDE and has been manufacturing pipe supports in KSA since 2007. KEKSA also specializes in manufacturing of spring hangers and customized pipe supports for the demanding applications of the petrochemical, oil and gas, and power generation industries. This joint venture successfully links the technical expertise of LISEGA SE with the local knowledge of KEKSA to optimally serve the GCC market for pipe supports. As a Saudi based company with state-of-the-art facility in Jubail Industrial City (KSA), LISEGA Arabia offers complete range of reliable and quality pipe supports at competitive price with shorter delivery time than competitors. German - Saudi Business Magazine LISEGA Arabia Co. Ltd. In addition, we have also supplied pipe supports for SEC & MAADEN in KSA, and in other GCC companies like DUBAL, KOC, KNPC, Qatar Petroleum & OMC as far as Turkmengas which is part of the Asian region. provider in GCC by nurturing our partnerships, building on our client base, and creating long-term value for the petrochemical, Oil & Gas, and Power Generation industries. As the petrochemicals, oil and gas, and power generation industries continue to grow in the Middle East region, LISEGA Arabia will be there to meet the increasing demand for pipe supports. LISEGA Arabia aims to become the premier pipe supports manufacturer and field services Pipe supports is an integral part of the pipe systems, hence the operational safety of the supports is having a significant impact on smooth operations of piping systems. Therefore, LISEGA Arabia also offers field services and makes valuable contribution to: Services: - Prevent costly damages and shut-downs - Increase operational safety - Guarantee plant availability - Secure long life of piping, associated equipment, and supports Through KEKSA/LISEGA Arabia, we have earned reputation for project execution excellence, manufactured and supplied supports for Saudi Aramco’s YERP, SADARA, Petro Rabigh Petrochemical, Shaybah & District Cooling Scheme (Dhahran) projects. AHK Saudi Arabia - www.saudiarabien.ahk.de 45 German - Saudi Business Magazine Draeger Saudi Arabia Draeger Saudi Arabia Dräger is a leading international company in the fields of medical and safety technology. Founded in Lübeck in 1889, Dräger has grown into a worldwide, DAX-listed enterprise in its fifth generation as a family-run business. Our long-term success is predicated on a valueoriented corporate culture with four central strengths: close collaboration with our customers, the expertise of our employees, continuous innovation and outstanding quality. “Technology for Life” is our guiding principle. Wherever they are deployed – in clinical settings, industry, mining or emergency services Dräger products protect, support and save lives. The safety division offers its customers complete hazard management solutions with a special focus on personal safety and protecting production facilities. The safety division's current portfolio includes stationary and mobile gas detection emergency and mobile ventilation units, warming therapy equipment for infants, patient monitoring equipment, IT solutions and gas management systems. Dräger has about 13.500 employees worldwide and is present in over 190 countries around the globe. The Group maintains sales and service organizations in over 40 countries. Its development and production facilities are based in Germany, Great Britain, Sweden, South Africa, the USA, Brazil, the Czech Republic and China. Safety division 46 range of training and services and also projects such as entire fire training systems. Industry performance systems, respiratory protection, firefighting equipment, professional diving gear, and alcohol and drugtesting instruments. The medical division's product range covers anesthesia workstations, ventilation equipment for intensive care, Dräger´s safety division develops, produces and markets products, system solutions and services for personal protection, gas detection technology and integrated hazard management. Its customers come from industry, mining and public sectors such as fire departments, police and disaster protection. The portfolio includes stationary and mobile gas detection systems, personal protective equipment, professional diving systems, alcohol and drug testing devices, a varied German - Saudi Business Magazine Draeger Saudi Arabia Demand for safety technology was robust in 2013. Chinese industrial production rose significantly in the third quarter, increasing demand for safety technology. The US economy was on the path to recovery following the financial crisis and grew moderately in 2013. The safety sector benefited from new oil and gas production methods. Thanks to the exploitation of new energy reserves, daily oil and gas production in the US continuously increased over the course of the year, even exceeding that of the world’s largest producer, Russia, in the second quarter for the first time, according to the US Energy Information Administration (EIA). In Southern Europe, demand for safety technology products fell due to the weak economy. Demand increased slightly in Latin America and continued increasing rapidly in the Middle East. Future situation of the safety technology industry margin. In North and Central Europe, we anticipate growth to be moderate the German and UK economies are likely to experience stronger growth than in 2013, for example while demand in South Europe is expected to be sluggish. In view of the major projects planned in oil and gas production and in the chemical industry, we expect growth to be moderate in the safety technology market in the Middle East. Drägerwerk AG & Co. KGaA / Other companies The business performance of Drägerwerk AG & Co. KGaA and other companies is mainly shaped by the performance of Drägerwerk AG & Co. KGaA which fulfills the core tasks of the Company as well as providing services to other Group companies. This includes the services provided to the Company and the Group by the Legal, Tax, Insurance, Treasury, Corporate Communications, Investor Relations, Financial Control and Accounting departments, as well as the Corporate IT, Human Ressources, Internal Audit and Basic Research departments. The role of gas In 2014, we expect slightly positive detection systems development in safety technology markets despite of weak global economic development and weaker growth in emerging markets than in prior years. In North America, we believe that demand for safety technology products will be high in the current fiscal year. The recovering US economy, coupled with the increasing independence from energy imports, will fuel strong growth momentum. In emerging markets, we expect investment in safety technology to continue to grow in view of the rising healthcare and safety requirements in these countries. We expect demand for our products in Europe to fall by a small A gas detection system is not simply a handful of gas detectors spread across an industrial plant. The choice of detection technology, quantity of detectors and routine service and maintenance of entire gas detection system are all important. However, the real challenge is to identify the possible migration path of any gas release based on a variety of factors wind direction, ambient temperatures, terrain, process pressures etc, which establishes the correct location of gas detectors. It is not practical to saturate an industrial plant with gas detectors, nor is it sensible to install only a single gas detector in a large area. There must be compromise between cost and risk reduction. There are two main types of gas detectors: a point gas detector which monitors the immediate vicinity of the gas detectors, or an open path gas detector which monitors a much larger area between two points. Each type of gas detectors has its own strengths and weaknesses. It is also important to choose the correct measuring technology as some gas detectors may be poisoned by other chemical in use, or be susceptible due to humidity or give invalid reading due to cross sensitivities. In all applications it is important to avoid spurious gas alarms. AHK Saudi Arabia - www.saudiarabien.ahk.de 47 German - Saudi Business Magazine V-Line Local Focus on MRO with Global Know-how MRO Connection™ Middle East information-driven solutions as add-on to V-LINE’s proven MRO supply services. Andreas Hergenröther, Delegate of German Industry and Commerce for Saudi Arabia and Yemen in discussion with Arne Randt, Head of MRO Technology Solutions at MRO Connection Middle East. Hergenröther: Mr. Randt, a very warm welcome from AHK Saudi Arabia. We have seen you around at multiple Saudi-German business meetings since April 2013. While you are part of the V-LINE GROUP you are not in the market to acquire new customers for spare parts supply services, are you? Randt: First of all I would like to thank you, Mr. Hergenröther, as well as the members of the German business circles for indeed making me feel very welcome in both Riyadh and Jubail. You are absolutely right, I am not in the spare parts business as such. Over the years, many of German - Saudi Business Magazine V-Line V-LINE’s customers have come up with questions regarding their Maintenance, Repair and Operations that do not fall into the core scope of a company focused on fast and seamless supply of cross-border MRO. That’s why we have created the joint venture MRO Connection Middle East where we focus on achieving deep insight into our customers decisions on “WHAT MRO to buy?” as opposed to the V-LINE MRO supply models for “HOW to buy MRO?” Hergenröther: That makes sense. What do you expect from the investment into this new venture in Jubail? Randt: Our clients are facing more and more challenges that affect both them and V-LINE’s supply processes. That’s why we partnered with the MRO Connection from the USA who have been successfully delivering turn-key solutions to take on those challenges. Hergenröther: What are these solutions and what are the challenges you are referring to? Randt: All of these solutions revolve around the three questions: What, when and how many spare parts should I procure? Not being able to answer these questions can create very painful challenges. Worldwide more and more data is collected in ERP and EAM systems, such as SAP, Oracle or IBM Maximo. This is great, but to make sense of this data has become very difficult. Both because the creation of meaningful reports itself is difficult and let’s face it: A lot of the data quality is very bad. The root causes are to be found within the people, the processes and the technology in place. Hergenröther: How are you able to resolve these problems and how does this fit together with V-LINE’s existing business? Randt: At MRO Connection Middle East we make sure to take all three factors into account. We are able to assess the skillsets of employees, the adequacy and logic of the processes and the capability of a client’s technology to support the first two. Tailored to the clients’ needs we are then providing on-the-job training and online learning modules, redefine processes and provide technology for MRO-specific tasks, for example Inventory Optimization and asset management. This very hands-on approach is harmonized with the more academic management trainings we have been conducting with our partner, the Deutsche Management Akademie Niedersachsen. Celebrating 35 years of business in Saudi Arabia at the end of this year, we embrace Saudization by localizing global know-how and hope to keep building long-term and mutually beneficial business relationships. Hergenröther: Good luck with your project here in Saudi Arabia and the wider GCC region and thank you for the interview, Mr. Randt. 48 AHK Saudi Arabia - www.saudiarabien.ahk.de 49 German - Saudi Business Magazine IBE Process diagnostic with gamma rays for the process industries IBE-Engineering Bulander & Esper Inc. presents itself for the Saudi Arabian Market The German company IBE- Engineering Bulander & Esper Inc. was founded in 1996 by the two owners Wolfgang M. Bulander and Thomas Esper. Mr. Bulander is Process Engineer and worked for mayor column internals manufacturer Raschig, Norton and Koch in the sales, marketing, design and process departments. Mr. Esper is Chemical Engineer and worked for Koch in the process engineering and diagnostic departments. IBE had cooperation with Sulzer, Glitsch, Saint-Gobain Norpro and Baretti for sales and marketing of column internals. Our detailed know how and experience in design, hydraulic calculation, simulation and troubleshooting of worldwide used distillation trays, random and structured packings and other related column internals is used in process diagnostic and troubleshooting of distillation columns, reactors and pipes with our online gamma ray service. This service is available 365 days with a mobilization time of 12-24 hours in Germany and 3-4 days in Europe and Middle East. Our customers are refineries, petrochemical and chemical plants in Europe. IBE is SCC certified since 2007. 50 German - Saudi Business Magazine IBE The main advantage of our service is the execution of the measurements during the running process. With our gamma ray scans we measure a density profile of the vessel height and over the diameter. This enables us the monitoring of the process and define the exact location of problems inside the vessel. The technique is used to identify the reason for increased pressure drop andreduced separation efficiency in distillation columns caused by damage of internals, corrosion of internals, coke or polymerization formation and flooding. The scans deliver immediately a complete picture of the mechanical and fluid dynamic situation of the column internals. At trayed columns we detect froth heights on the active area of the trays, liquid entrainment, flooding, weeping, foaming and liquid levels in downcomers. The results at structured and random packed columns and reactors are distribution quality of liquid and vapour in packings and catalyst beds, liquid levels on distributors and chimney trays. With our calculation programs we are able to perform hydraulic calculations of column internals and thermodynamic process simulation of columns and their auxiliaries. With the combination of the gamma ray scans, the hydraulic calculations and the process simulation we are able to identify nearly all reasons for column malfunction. After interpretation of the scan results the customer receives useful proposals for a problem solution, so column shut downs and preparation for repair are easier to plan, less time consuming and more effective. IBE can also provide engineering studies for revamping and debottlenecking of columns. Contact Addresses: Headquarter: IBE Engineering Bulander & Esper Inc. D-64673 Zwingenberg, Im Lucken 14 Wolfgang M. Bulander Tel.: +49-62 51-78 81 36 Thomas Esper Tel.: +49-62 51-78 81 06 Facsimile: +49-62 51-78 81 34 Mail: ibe@ibe-engineering.com Branch Office: IBE Engineering Bulander & Esper Inc. D-67269 Grünstadt, Bahnhofstraße 16 Thomas Esper Tel.: +49-63 59-94 93 90 Facsimile: +49-63 59-94 93 91 Mail: info@ ibe-engineering.com AHK Saudi Arabia - www.saudiarabien.ahk.de 51 German - Saudi Business Magazine Trade Fairs The world’s leading event for the digital world 16 – 20 March 2015 - Hanover The only show in the world to provide a complete overview of the latest information and digitization technologies Hannover. With “d!conomy” as its lead theme, China as Partner Country, and a solid lineup of international conferences and displays on all the defining trends in IT and digitization, CeBIT is poised for a strong start to its 2015 season this coming March. Held in Hannover, Germany, CeBIT is the world’s leading showcase for the digital economy. It is a sharply business-focused trade fair and conference that explores today’s defining market trends of big data, cloud computing, mobility, social media and security in unparalleled breadth and depth. d!conomy as lead theme CeBIT 2015 will center around the rapidly growing influence of IT across all areas of business and society and, associated with this, the role of IT as a key driver of innovation. “In partnership with us, the organizers of CeBIT, the IT industry has chosen ‘d!conomy’ as the lead theme for the 2015 showcase,” Oliver Frese, a member of the Managing Board of Deutsche Messe AG, said. “Digitization is everywhere and is shaping ever more dimensions of working and social life. IT is transforming existing business models while at the same time giving rise to completely new ones. Information technology now has the ability to rapidly disrupt entire industries. d!conomy encapsulates this development perfectly.” Over the past few years, the game-changing IT industry trends of big data, cloud computing, mobility, social media and security had developed rapidly and were now converging to have a profound combined impact on both the business world and society generally. “By virtue of convergence, fundamental innovations wield great transformative The world’s leading trade fair for architecture, materials and systems 19 - 24 January 2015 - Munich power that has already brought us to the dawn of a new, digital era of industry,” he said. China, the official Partner Country for CeBIT 2015, has undergone a rapid process of transformation in recent years, particularly in the IT industry. The Kingdom of Saudi Arabia will be represented for the first time in the Exhibition through a Mr. Adel Moosa Arab Sea Information Systems Riyadh, Saudi Arabia. AHK is the official representative of CEBIT. For further information, please contact tradefair@ahk-arabia.com, Tel.: +966 11 4050201 The world’s leading trade fair for industrial technology 13 – 17 Apr 2015 - Hanover HANNOVER MESSE 2015 will showcase the great innovative power that all sectors of industry can unleash if suppliers, manufacturers and customers join together to form networks of communication and collaboration with the common goal of optimizing products and solutions.”The technological advances that can flow from networking will be made real and tangible at HANNOVER MESSE this coming April. Visitors to the fair will witness digitally networked production plants, ingenious new production processes, and next-generation industrial robots live in action. The visitors come to Hannover to explore the future of industry and invest in the latest factory and energy technology on show by some 5,000 exhibitors. Like In 2013, when the Kingdom of Saudi Arabia was represented through high-profile participation, with a pavilion covering 1000 square meters, a Saudi Pavilion is planned again for 2015. 52 “The trend towards digitization that is sweeping the economy is a powerful force for transformation in the world’s manufacturing industries,” said Dr. Jochen Köckler, a member of the Managing Board of Deutsche Messe, the organizer of HANNOVER MESSE. “Factories and energy systems are digitally networked, product development and release cycles are getting shorter, and new business models are popping up at an ever faster pace. In this environment, manufacturers who turn their backs on collaboration and try to do everything in-house will ultimately lose out. Increasingly, the German - Saudi Business Magazine Trade Fairs companies that get their products to market the quickest and hence stay ahead of the competition will be those which are able to form close networks with all stakeholders in their production processes. The lead theme chosen for HANNOVER MESSE 2015 – “Integrated Industry – Join the Network!” reflects this trend and will help create forward momentum AHK is the official representative of Brau Beviale. For further information, please contact: tradefair@ahk-arabia.com, Tel.: +966 11 4050201 BAU, the World's Leading Trade Fair for Architecture, Materials and Systems, is the biggest and most important event in the sector. The next BAU takes place from January 19 to 24, 2015 at the Messe München exhibition center. Around 2,000 exhibitors from more than 40 countries and over 235,000 visitors from all around the world are expected to attend. On display at BAU on 180,000 square meters of exhibition space for years all the available space has been fully booked are architectural solutions, materials and systems for commercial and residential construction and interiors, for both new build and renovation and modernization. Every two years this event brings together market leaders from the sector to participate in a unique international display of competence spanning all the construction trades. BAU is also the world’s largest trade fair for architects and construction engineers, attracting more than 60,000 design professionals. The exhibits at the fair are organized according to building material and also product and theme areas. The many attractive events in the supporting program, among them high caliber forums with experts from all over the world, round off this industry showcase. Mr. Fahad Al-Hammadi, Chairman of the National Construction Committee visited BAU 2013 and signed an MOU between the National Committee for Contractors at the Council of Saudi Chambers (NCC) and the Federation of the German Construction Industry, in order to foster closer relations between the two organizations as well as to establish measures to facilitate future cooperation in the fields of engineering and construction a similar delegation trip is planned again for 2015. AHK is the official representative of Bau. For further information, please contact: tradefair@ahk-arabia.com, Tel.: +966 11 4050201 The leading trade fair for floor coverings 17 - 20 January 2015 - Hanover Floor coverings play a central role in interior design, so it is not surprising that DOMOTEX the world's leading trade show for floor coverings is an important date in the business diary of countless professionals. No other show will give you such a comprehensive overview of the market or so many opportunities to extend your range of contacts and cultivate existing connections. Whether you are looking for new suppliers, searching for specific products or hoping to learn more about your special area of expertise at the many themed presentations, the world's leading trade fair for floor coverings is an absolute "must" for your diary. Floor-laying professionals will also be well catered for, with new areas of interest and current topics highlighted and explored in a you can find further detailed information practical work setting. In line with the DOMOTEX claim "The World of Flooring" - every product group and trend will be showcased in detail at DOMOTEX in Hannover. Hand-made and machine-made carpets, textile and resilient floor coverings, parquet and laminates take pride of place, however equipment and products for floor laying, maintenance and applications technology will also feature in this impressive array. Accordingly, the trade visitors come from the wholesale/retail trade, the field of architecture, interior design and the skilled trades. They obtain a complete market overview so that they can compare suppliers, products, terms and prices, as well as gain insights into the latest trends and developments. A broad range of special events, trade association meetings and conferences offers you the chance to learn more about the key issues affecting the industry today. Here you can compare notes, benefit from expert knowhow and strengthen your position in your everyday business dealings. AHK is the official representative of Domotex. For further information, please contact: tradefair@ahk-arabia.com, Tel.: +966 11 4050201 AHK Saudi Arabia - www.saudiarabien.ahk.de 53 Trade Fairs Trade Fairs TRADE FAIRS REPRESENTED BY AHK Saudi Arabia - GESALO Opti – The International Trade show for Optics & Design (09 - 11 January 2015, Munich) http://www.opti.de/en/home/ ITB-Berlin - The World’s leading Travel Trade show (04-08 March 2015, Berlin) http://www.itb-berlin.com/ITBBerlin/ 54 Gulf Industry Fair - The Regions Premiere Industrial Event in the GCC 03-05 Feb 2015 http://www.gulfindustryfair.com/ index.php/en/ Spielwarenmesse - The International trade Fair for the toy sector (29 Jan - 03 Feb 2015 Nuremberg) http://www.spielwarenmesse.de/ Hannover Messe - The World’s most important industry show (13 – 17 Apr 2015, Hanover) http://www.hannovermesse.de/home VIVANESS - International Trade Fair for Natural Personal Care (11 - 14 Feb 2015, Nuremberg) www.vivaness.de/en/ BIOFACH - World's leading Trade Fair for Organic Food (11 - 14 Feb 2015,Nuremberg) http://www.biofach.de/en/ Green Week Berlin - The International exhibition for the food, agricultural and horticultural industries (16-25 Jan 2015, Berlin) http://www.gruenewoche.de/en/ IWA - The exhibition for hunting guns, shooting sports and outdoor equipment (06-09 March 2015, Nuremberg) http://www.iwa.info/en/ EC-European Coating - The International Trade Fair for coatings and paint Industry (21-23 April, Nuremberg) h t t p : / / w w w. e u r o p e a n - c o a t i n g s show.com/en/ DOMOTEX - The leading Trade Fair for Floor Coverings (17 - 20 January 2015 Hanover, Germany) http://www.domotex.de/home Fruit Logistica - The International Trade Fair for fresh produce industry services and technical solutions (04-06 February 2015) http://www.fruitlogistica.de/en/ Conhit - The International Trade Fair for connecting healthcare IT (14-16 February 2015, Berlin) http://www.conhit.de/en/ Cebit - The World’s leading Event for the digital world (16 – 20 March 2015, Hanover) http://www.cebit.de/home Transport logistic - The International Trade Fair for transport and logistics (05-08 Mai 2015, Munich) http://www.transportlogistic.de/ BAU - Worlds leading Trade Fair for Architecture, Materials and Systems (19-24 Jan 2015, Munich) www.bau-muenchen.com ISPO - International Trade fair for segments of Outdoor, Ski, Action, Performance Sports, Textrends, Health & Fitness and Sourcing (05-08 Feb 2015, Munich) http://munich.ispo.com/en/ INHORGENTA MUNICH - The International Trade Fair for Jewelry, Timepieces and Lifestyle (20-23 February 2015, Munich) www.inhorgenta.com Wasser Berlin – The International Trade Fair & congress for water Management (24-27 March 2015, Berlin) http://www.wasser-berlin.de/en/ FOR FURTHER INFORMATION ON THESE FAIRS, PLEASE CONTACT THE TRADE FAIR DEPARTMENT OF AHK TEL.: +966 11 4050201 OR TRADEFAIR@AHK-ARABIA.COM AHK Saudi Arabia - www.saudiarabien.ahk.de 55 German - Saudi Business Magazine AHK Services Services of AHK Saudi Arabia Small and medium-sized companies are particularly supported by experienced partners to enter foreign markets. The AHK’s Service Brand DEinternational is present in all 120 offices of the German Chamber Network abroad. According to the services of DEinterantional, AHK Saudi Arabia offers German companies services to assist them in the market entry and Saudi companies to get in touch with German businessmen. Important sectors like health care, infrastructure, construction, petrochemicals, metallurgical mills and plants, food industry as well as energy related topics are covered by one of our employees, who are specialized in these fields. Market Entry 1. Individual Market Advice The individual market advice is our most successful service. In a close dialogue with German companies and on the basis of the documents and product samples they provide, we identify business and product specific advantages on the Saudi market and analyze their market opportunities. 2. Business Partner Search Within the context of the business partner search we take on the search for the right and appropriate business partners. 56 3. Address Research The AHK Saudi Arabia offers a verified research of sectoral and address information to simplify the establishment of contacts with Saudi companies. 4. Direct Mailing Services We offer you individual support in the search for interested business partners and we will take care of establishing initial contacts. 5. Business-Trips AHK Saudi Arabia offers German companies the possibility to take part in business trips of different industrial sectors to Saudi Arabia. During 3 to 4 days stay in Saudi Arabia the aim of these business trips is to give a first impression of the country and the market and to make first contact with Saudi businessmen. The main focus of an AHK-business trip lies on business to business meetings (B2B). Saudi businessmen who are interested in cooperation with German companies are cordially invited to contact us. 6. Catalogue Show - Exhibition AHK Saudi Arabia and Yemen presents German companies in the most important trade- and industrial centers in Saudi Arabia. Saudi companies have the unique opportunity to see a wide range of high quality products “Made in Germany” at one spot. The Catalogue Show is usually combined with the German breakfast. Traditionally high ranking representatives of Saudi and German economy attend the breakfast and enjoy Germany’s delicious food and beverages. Market Information Knowledge about the Saudi Arabian market and characteristics of its society and culture are essential for a successful market entry. Regarding this, AHK Saudi Arabia offers Quick Market Checks and Market Surveys. In cooperation with our partner Germany Trade & Invest, we also help Saudi companies, who are interested in business in Germany. Legal Information and Support 1. Legal Information In order to enter a market successfully, the legal aspects should be considered carefully. For this reason it is our pleasure to provide German companies with the needed legal services in diverse businessrelated aspects reaching from customs German - Saudi Business Magazine AHK Services Your service provider for sustainable business development with one of the world’s largest economies and taxes to investment, import and export regulation, etc. Our objective is to solve disputes without harming the long term business relations. In addition, we offer extrajudicial mediation and offer our help when contacts to public authorities and/or law firms are required. 5. Visa Service 2. Health Treatment in Germany AHK Saudi Arabia assists Saudi Arabian patients who wish to make use of health treatment in Germany. 3. Debt Collection Long experiences with debt collection show that extrajudicial proceedings offer faster and more promising solutions than court proceedings by civil law. AHK Saudi Arabia's experts with long term experience in the country can also help you to dissolve and avoid misunderstandings due to different perceptions of trade and business caused by cultural differences or customs. Sustainable damage of long year business partnerships can easily be avoided by the debt collection through AHK Saudi Arabia. 4. Mediation AHK Saudi Arabia acts as a mediator in cases of commercial disputes between the German and the Saudi business partner. To help Saudi companies and businessmen with the visa application process we offer to provide exhibitors and visitors to trade fairs in Germany with a letter of recommendation to the German consulate/embassy. AHK Saudi Arabia assists German companies and businessmen in visa issues. We support business travelers who stay temporarily in the Kingdom in offering to act as the sponsor during their stay. AHK Saudi Arabia requests the so called E-Number at the Ministry of Foreign Affairs and is the responsible institution during the time of the visit. 6. Translation Services We offer translations of letters, documents, company profiles etc. in the following languages: • German <> Arabic • German <> English We also offer interpreting-services German <> Arabic during AHKEvents and delegations. Trade Fair Services AHK Saudi Arabia is the official representative of the Deutsche Messe AG, Messe Munich, Messe Berlin GmbH, and Spielwarenmesse eG in our region. Exclusively for Saudi and Yemeni clients we offer a wide range of services as we take care of their preparation for trade fair participation as an exhibitor or visitor. These services includes selecting the suitable trade fair, according to their company profile, preparation of the application form, booth rental, etc. for exhibitors. For visitors, we are providing the admission ticket, issuing the recommendation letter for the visa process, providing info on visa application, flight and hotel booking, etc. For further information to the services of AHK Saudi Arabia, please contact: German-Saudi Arabian Liaison Office for Economic Affairs (GESALO) P.O. Box 61695, Riyadh 11575, Kingdom of Saudi Arabia Tel.: 00966 11 4050201 Fax: 00966 11 4031232, Email: info@ahk-arabia.com www.saudiarabien.ahk.de AHK Saudi Arabia - www.saudiarabien.ahk.de 57 German - Saudi Business Magazine AHK Saudi Arabia Your contact persons at AHK Saudi Arabia Your contact persons at AHK Saudi Arabia Management Public Relations & IT Andreas Hergenröther Stefan Weiler Delegate of the German Economy for Saudi Arabia, Bahrain and Yemen Deputy Delegate of the German Economy for Saudi Arabia, Bahrain and Yemen DEinternational hergenroether@ahk-arabia.com Tel.: + 966 (0) 11 405 02 01 Management Christian Engels Deputy Delegate of the German Economy for Saudi Arabia, Bahrain and Yemen Legal Affairs & Public Relations engels@ahk-arabia.com Tel.: +966 (0) 11 405 02 01 Ext. 107 weiler@ahk-arabia.com Tel.: +966 (0) 11 405 02 01 Ext. 108 Legal Affairs Omar Hassan Hamza Assistant Delegate & Head of Legal Affairs, hamza@ahk-arabia.com Tel.: +966 (0) 11 405 02 01 Ext. 106 Christian Engels Dani Yussek Head of Public Relations Public Relations engels@ahk-arabia.com Tel.: +966 (0) 11 405 02 01 Ext. 107 yussek@ahk-arabia.com Tel: +966(0) 11 405 02 01 Ext.115 Mohammed Akbar IT System Administration akbar@ahk-arabia.com Tel.: +966 (0) 11 405 02 01 Ext. 114 Accountancy Trade Fairs Al-Ameen Al-Dalali Head of Trade Fair and Export Promotion al-dalai@ahk-arabia.com Tel.: +966 (0) 11 405 02 01 Ext. 109 Asif Iqbal Ansari Trade Fair Officer / Trade Fair Coordinator for Visitors ansari@ahk-arabia.com Tel.: + 966 (0) 11 405 02 01 Ext. 112 DEinternational Mohammed Faleel Head of Business Promotion & Business to Business Affairs faleel@ahk-arabia.com Tel.: +966 (0) 11 405 02 01 Ext. 105 Tareq Qamhan Intermediation of Health Services Mohammed Khusro Accountancy khusro@ahk-arabia.com Tel.: +966 (0) 11 405 02 01 Ext. 111 Raffael Mieth Administration ahmed@ahk-arabia.com Tel.: +966 (0) 11 405 02 01 Ext. 102 Farook Hameed Faisal Nalpurakkal mieth@ahk-arabia.com Tel.: +966 (0) 11 405 02 01 Ext. 113 hameed@ahk-arabia.com Tel.: +966 (0) 11 405 02 01 Ext. 100 faisal@ahk-arabia.com Tel.: +966 (0) 11 405 02 01 Ext. 100 Philipos Tedros Mohammed Riyas Gulcan DEinternational Consultant DEinternational Consultant Address Research / Front Desk riyas@ahk-arabia.com Tel.: +966 (0) 11 405 02 01 Ext. 101 Jan Lutz Mueller Anton Bondarew Mohammed Aminul Islam DEinternational Consultant bondarew@ahk-arabia.com Tel: +966 (0) 11 405 02 01 Ext.118 Administration / Front Desk Messenger tedros@ahk-arabia.com Tel: +966 (0) 11 405 02 01 Ext.103 mueller@ahk-arabia.com Tel.: +966 (0) 13 3472473 Ext. 1525 Mushtaq Ahmed At your Service qamhan@ahk-arabia.com Tel.: +966 (0) 13 3472473 Ext. 1526 DEinternational Consultant 58 German - Saudi Business Magazine AHK Saudi Arabia Facilities info@ahk-arabia.com Tel.: +966 (0) 11 405 02 01 Delegation der Deutschen Wirtschaft für Saudi-Arabien und Jemen (AHK Saudi-Arabien) German-Saudi Arabian Liaison Office for Economic Affairs (AHK Saudi Arabia) Futuro Tower, 4th Floor, Al Ma'ather Street P.O.Box 61695, Riyadh 11575, Königreich Saudi-Arabien / Kingdom of Saudi Arabia Phone : 00966-11-4050201 - Fax : 00966-11-4031232 Mail: info@ahk-arabia.com Web: http://saudiarabien.ahk.de/ AHK Saudi Arabia - www.saudiarabien.ahk.de 59 FAWAZ A. BAGHDADI ADVERTISING AGENCY P.O. Box 7301, Riyadh 11462, Kingdom of Saudi Arabia Tel.: +966 11 270 4102 - Fax: +966 11 270 4103 info@fawazadvertising.com