Production facilities for elastomers

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Overview

This opportunity entails localizing the entire value chain for elastomers to serve the KSA and the GCC industries.

Currently, KSA organic synthesis market relies heavily on imports; 336,500 tons are imported out of a total of 736,500 tons market size.

In addition, elastomers consumption in KSA is expected to rise significantly over the next couple of years driven mainly by the rapid industrialization. Total organic synthesis market size is expected to reach 2,274,600 Tons by 2030.

In addition, key raw material for production of elastomers are available in KSA including: SBR, PBR, EPDM and carbon black.

Beyond the KSA market, private sector players have the opportunity to tap into a large and growing GCC elastomers market that is expected to increase from 2,337,000 tons in 2018 to 5,688,000 tons in 2030.

The increase in local and regional demand for elastomers and the limited presence of local players coupled with the Governments push for localization presents a great opportunity for the private sector to invest in establishing production facilities for elastomers in KSA.

Beyond the production facilities for elastomers, other opportunities exist across the value chain including:

  • Developing local conversion facilities for tires
  • Developing local conversion facilities for non-tire application such as shock absorbers and conveyor belts

Opportunity Details

Chemicals
Sector
To be determined by the investor
Location
To be assessed by investor (cost drivers and other financial figures to be shared upon request)
Investment size
Open to starting the project as soon as possible
Timeline

Investment Model

Model: Opportunity to consider different operating models
  • Pure private sector model
  • Joint venture with local player

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