Japanese-Saudi Business
Opportunities Forum
TOKYO 31st Jan – 2nd Feb 2012
Saudi-Japanese
Fruitful Cooperation
Eng. Saleh F. Al Nazha
COO, TASNEE
Contents
• Introduction to TASNEE
• Japan & Saudi Arabia Trade
• The Industrial Clusters in Japan and Saudi Arabia
• Potential Opportunities for Collaboration
• Introduction to TASNEE
• Japan & Saudi Arabia Trade
• The Industrial Clusters in Japan and Saudi Arabia
• Potential Opportunities for Collaboration
Introduction to TASNEE
TASNEE Highlights
Established in the 1985 , first Industrialization
Joint-Stock Wholly Owned by Private Sector .
Major Businesses : Petrochemicals, Titanium
dioxide and downstream products and services
Fully integrated operations including project
development and implementation, operations and
marketing
Revenues ($ 5.23 Billion) in 2011
Over 7000 Employees in five continents.
TASNEE Main Recognition
1st
2nd
Largest Saudi Industrial & Petrochemical Company
Award
2nd
Project Finance Award 2006
Best Work Environment in Saudi Petrochemicals 2008 & 2009
1st
Award
Social Responsibility Uniqueness
Largest Global Producer of Titanium Dioxide
Top
1st
Industrialization Joint-Stock Wholly Owned by Private Sector 1985
Saudi Company of The Year 2008
Fastest of Growing Companies Award
TASNEE Main Businesses
TASNEE Chemicals
700 KTA
TiO2
TASNEE Plastic
TASNEE Acrylic Acid
400 KTA
HDPE
80 KTA
SAP
400 KTA
LDPE
160 KTA
720 KTA
PP
330 KTA
Butyl
Acrylate
TASNEE Polyol
120 KTA
Polyol
n-Butanol
TASNEE Performance
TASNEE PETROCHEMICALS
FORMED 2000
SAUDI POLYOLEFINS COMPANY FORMED IN
PARTNERSHIP WITH BASELL 2001
• TASNEE PETROCHEMICALS
MARKETING FORMED 2001
•
TASNEE ACQUIRED 66% OF
CRISTAL SHARE 2003
PE PLANT STRATUP 2009
CRACKER STARTUP 2008
START-UP OF PDH/PP
PROJECT 2004
ACQUISTION OF
LYONDELL (TiO2) BY
CRISTAL 2007
TASNEE AQUARIED
TASNEE PETCHEM 2006
TASNEE Portfolio
Petrochemicals
SPC
SEPC
SAAC
SAMCO
Chemicals
Diversified
Services
Metals
TASNEE Petrochemical Marketing
Market Polypropylene & Polyethylene (HDPE ,LDPE) products with
the following applications: Raffia, Fiber, film and Injection
Broad customer base:
o Customer range from small, medium & large size
o Supplying more than 1100 customers
o Present in five regions and 52 countries
TASNEE KSA Presence
Arar
JORDAN
IRAQ
IRAN
Sakakah
KUWAIT
Tabuk
Ha‘il
Duba
Khafji
Jubail
Buraydah
Dammam
Madina
EGYPT
BAHRAIN
Arabian Gulf
Hofuf
QATAR
U.A.E.
Yanbu
Riyadh
Rabigh
Jeddah
Mecca
SAUDI ARABIA
Gulf of Oman
OMAN
Taif
SUDAN
Red
Sea
Abha
Jizan
Arabian Sea
YEMEN
Riyadh Headquarter
Manufacturing plant
Technical Centre
Sales Office
Marketing Global Network
Presence in 52 Countries
2004
KSA
UAE
Oman
Qatar
Bahrain
Kuwait
Syria
Jordan
Lebanon
Iran
Iraq
Yemen
2005
2006
2007
Kenya
Tansani
Uganda
a
Ethiopia
Pakistan
India
Sri Lanka
Nepal
Bangladesh
Marocco
Tunis
Egypt
Sudan
Libya
Algeria
2008
Malaysia
China
Hongkong Indonesia
Thailand
Vietnam
Myanmar
Taiwan
Philippines
2009
South Africa
Mosambique
Madagascar
Mauritius
2010
Nigeria
Senegal
Ivory Coast
Cameron
Ghana
Congo
Togo
Benin
Mali
Niger
Angola
Guinea
Offices
Riyadh
Headquarter
Sri Lanka
Tunis
Singapore
CRISTAL Global at a Glance
o 2nd largest titanium dioxide producer in the world
o Largest merchant titanium chemicals producer
o Leading manufacturer of ultrafine titanium products
o Back integrated into feedstock mining with a mine in Paraiba, Brazil
and as owner of Bemax, the world’s 5th largest TiO2 feedstock
producer
o International Titanium Powder is a wholly owned subsidiary of
Cristal Global (Acquired in 2008)
o 8 TiO2 manufacturing plants in 6 countries and in 5 continents
TASNEE Global Presence (Tio2)
14
• Introduction to TASNEE
• Japan & Saudi Arabia Trade
• The Industrial Clusters in Japan and Saudi Arabia
• Potential Opportunities for Collaboration
Key Facts of Saudi & Japanese Collaboration
o
Japan is the second largest trade
partner for Saudi Arabia
o
The total volume of trade between
Japan & Saudi Arabia in 2010 was
$ 42.3 Billion
o
Several Japanese companies are
active
in
the
Chemicals
&
Petrochemicals sector of Saudi
Arabia
Source: Japan Customs
• Introduction to TASNEE
• Japan & Saudi Arabia Trade
• The Industrial Clusters in Japan and Saudi Arabia
• Potential Opportunities for Collaboration
The Industrial Clusters in Japan
o
Chemical industry in Japan produces large added value with high valueadded ratio, even though there are many small and mid-sized chemical
companies
o
This highly integrated cluster has generated high performance chemical
products
Industrial Clusters in Japan
50%
(Value-Added ratio)
Added Value/Shipment
Ceramics
Clothing/Textile
Metalware
40%
Chemicals
30%
Steel
Non-Ferrous
Metals
20%
10%
Plastics/Rubber
Machinery
Electronic/IT
Paper/Pulp/
Food/Others
Printing
Transport
equipments
Petroleum/Coal
0%
Source: METI
Upstream
Downstream
The Industrial Clusters Program in Saudi Arabia
o
Saudi Arabia have launched the industrial clusters program which will focus on the
following clusters: Automotive, Plastic packaging, Home appliances, Solar industries and
Minerals & metals
o
The Saudi & Japanese companies will have a room for cooperation within the Saudi
industrial clusters program in the chemical industry
Evolution of the Saudi Arabia Chemicals Industry
Basic
Raw material
Crude oil
Gas
Refinery
Basic Chemicals
Commodity
Chemicals
Aromatics
Ethylene Glycol
Ammonia
Polyethylene
Methanol
Polypropylene
Polystyrene
Performance
Chemicals
ABS
Synthetic Rubber
Polycarbonate
Acrylates
Technical
Chemicals
Polyol
MDI/PU
Carbon Fiber
Kingdom’s Economic Growth by Sector
The targeted Saudi industrial clusters will serve the potential industrial
growth in the Kingdom and will substitute the imports
Sector
2009
2010
2011f
Agriculture
0.6
1.8
1.0
Manufacturing
2.3
5.0
5.5
Electricity, gas & water
6.8
6.0
6.5
Construction
4.7
3.7
4.5
Wholesale & retail trade
2.5
4.4
4.8
Transport & communication
6.9
5.6
5.0
Finance
3.7
1.4
2.1
Oil
-8.0
2.1
3.5
Government services
3.8
5.9
5.0
Total
0.6
3.8
4.2
Source: Jadwa Investment
• Introduction to TASNEE
• Japan & Saudi Arabia Trade
• The Industrial Clusters in Japan and Saudi Arabia
• Potential Opportunities for Collaboration
Potential Opportunities for Collaboration
o
Engineering plastics
o
Specialty chemicals
o
Compounding
o
Strategic acquisitions
o
Specialty films
o
Automotive industry
o
Pharma /Health care
o
Power generation
o
Water Treatment
o
High-Tech manufacturing
o
Renewable energy
o
Industrial Research &Training
o
Synthetic rubber and related
industries (Tires/Auto components )
Successful Stories for Saudi & Japanese Collaboration
Company Name
Business
Line
Establish
Investment
(SR mil)
Investors
Employees
Eastern
Petrochemical Co.
(SHARQ)
Production of
PE & EG
May 1981
1,890
SABIC 50%
SPDC 50%
919
International
Methanol Co.
(IMC)
Methanol &
Butanediol
March 2002
330
SIPC 75%
JAMC 35%
Saudi Methanol
Co. (AR-RAZI)
Chemical
Grade AA
Methanol
February 1983
259
SABIC 50%
JSMC 50%
455
National Pipe Co.
Ltd. (NPC)
Steel Pipes
August 1978
200
T. Alireza & other Saudi 51%
Sumitomo Metal 33%
Sumitomo Corp 16%
300
Saudi ArabianJapanese
Pharmaceutical
Co. Ltd. (SAJA)
Medicine
July 1996
107
Tamer & other Saudi 79.18%
Sankyo 10.41%
Yamanouchi 10.41%
44
Saudi ORIX
Leasing Co.
Lease
Financing &
Car Leasing
April 2001
60
ORIX 20% & ORIX Leasing
Pakistan Ltd 10%
Trade Develop’t & Invest’t 32%
Saudi Investment Bank 28%
Other Saudi 10%
50
Successful Stories for Saudi & Japanese Collaboration
Company Name
Business
Line
Establish
Investment
(SR mil)
Investors
Employees
Zamil Steel
Building Vietnam
Co. Ltd
PreEngineering
Buildings
(PEB)
1997
25
Zamil Industrial Investment Co.
(ZIIC) 90%
Mitsui & Co. Ltd 10%
Saudi Factory for
Electrical
Appliances Co.
Ltd. (SFIECT)
Assembling
and Sales of
Small A/C
April 1986
20
ABBAR 75
MHI 20%
Chatani Corp 5%
123
DENSO
ABDULLATIF
Jameel Co. Ltd
Assembling
and Sales of
Car A/C
March 2001
7.5
Denso Int’l Asia Ple. Ltd
(Singapore) 50%
Abdul Latif Jameel Co. 50%
20
Chiyoda Petrostar
Ltd.
Plant EPC
Contractor
June 1975
7
Petrostar Ltd 50%
Chiyoda Corp 49%
Marubeni Saudi
Arabia Co., Ltd.
Trading
November 1982
7
Marubeni Corp 50%
Abdul Chaffar Jamjoom 50%
13
RAWEC (Rabigh
Arabian Water &
Electricity
Company)
Water,
Electricity
and Steam
August 2005
5
Marubeni 30%
JGC 25%
Itoehu 20.1%
Acwa Power Project 24.9%
50
Thank You