INSIGHT
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GULF PETROCHEMICALS & CHEMICALS ASSOCIATION
October 2011 | Issue 17
WELCOME Dear Colleagues
The GPCA Forum is the leading petrochemical event in the Middle East
All set for Dubai! GPCA is expecting increased attendance at its Sixth Annual Forum in December he date and venue for the Sixth Annual GPCA Forum have been confirmed. The region’s flagship petrochemical event will take place at Atlantis, The Palm, Dubai, from 13-15 December 2011. Saudi Arabia’s Prince Faisal Bin Turki Al-Saud, advisor, Ministry of Petroleum & Mineral Resources, has been confirmed as the keynote speaker at this year’s event, which is expected to attract more than 1,500 delegates, industry leaders and decision-makers. Prince Faisal is the Gas Regulator in Saudi Arabia and is distinguished for his role in advancing the development of the petrochemical industry, both upstream and downstream. He is also the vice
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chairman of Saudi Arabia’s National Program for Industrial Clusters. Having capitalized on feedstock advantage, GPCA member companies in the coming decade will be challenged to capture further, sustainable value-creating opportunities. These lie downstream and are linked to the development of industrial clusters across the region, particularly those being established to provide materials for the automotive, flexible packaging and appliances sectors. Petrochemicals provide the essential building blocks for further industrial and social development. Thus, GPCA has decided that the theme of this year’s event, “Moving downstream – Creating
added value and sustainable growth”, will reflect this trend. The Forum has attracted top-level speakers from leading chemical companies, including Mohamed Al-Mady, chairman of GPCA and vice chairman and CEO of SABIC; Hamad Rashid Al-Mohannadi, deputy chairman, Qatar Petroleum, and Fahad Al Mubarak, chairman and managing director, Morgan Stanley Saudi Arabia. Year-on-year, the Forum sees significant increases in attendance and it is now the largest gathering of petrochemical leaders and decision-makers in the Middle East. We anticipate a hugely successful event and look forward to welcoming you to Dubai. O
Welcome to the 17th edition of GPCA’s Insight newsletter. As it is four years since we launched Insight, we feel that now is the right time to redesign and relaunch this publication. I do hope you find the new look and content attractive and interesting. The fourth quarter of this year is a busy time for GPCA. In October, we are holding our inaugural GPCA Talent Convention in Dubai and organizing our third GPCA Supply Chain Conference in Abu Dhabi. In December, our now well-established GPCA Annual Forum will take place in Dubai. We are confident that the well developed programs for our events will address a portfolio of our industry’s needs and concerns. In this issue, you can learn more about GPCA’s activities in the area of human resources (HR) and about the market for polycarbonate, a high performance polymer now being produced in the Gulf region. We also have a report from our recent Fertilizer Convention, held on 19-21 September in Doha, Qatar, and an update on the progress being made in the implementation of Responsible Care in our region. Yours faithfully ABDULWAHAB AL-SADOUN Secretary general, GPCA
Presented by
INSIDE THIS ISSUE GPCA Fertilizer conference report
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Saudi Aramco/Dow sign mega-deal
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GPCA Supply Forum preview Responsible Care update
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Product in Focus - Polycarbonate Interview - Maha Mulla Hussain on HR
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GPCA Insight is online at: gpca.org.ae
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NEWS
GPCA Fertilizer Convention grows GPCA recently held its second fertilizer convention in Doha, with a focus on volatility in the global markets he 2nd Annual GPCA Fertilizer Convention in Doha, Qatar, witnessed a 27% increase in delegates, with more than 260 representatives in attendance from 36 countries from the Middle East, China, Europe, the CIS and the Americas. The event, co-organized for the second year running by GPCA and CRU Events, offers an important networking platform for fertilizer organizations which play a vital role in contributing to the efforts of feeding the world’s growing population. Qatar, chosen as the venue this year, is one of the world’s largest exporters of ammonia, urea and sulphur to the world markets and delegates had the opportunity to visit QAFCO’s newest facility for ammonia and urea – QAFCO 5, before the convention began. H.E. Dr Mohammed Saleh Al Sada, Minister of Energy and Industry, Qatar, addressed the convention and opened the first day’s programme which represented the views of 16 international companies and organizations involved in the fertilizer industry. The keynote address from Dr U. S. Awasthi, managing director from the India Farmers Fertiliser Cooperative (IFFCO), examined the reasons behind volatility in the fertilizer market and its negative effects on the food supply chain. Awasthi shared strategies to use in volatile situations with the end goal of achieving global food security. Other highlights from the first day included QAFCO’s CEO, Khalifa Al Sowaidi, who discussed
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H.E. Dr Mohammed Saleh Al Sada, Minister of Energy and Industry, Qatar, opened the convention the company’s long-term strategy as a major fertilizer chemical supplier to the global market, and Minemakers’ managing director and CEO Andrew Drummond, who offered insights into the company’s major rock phosphate projects in Australia and Namibia. Jose Hidalgo of the International Finance Corporation – a member of the World Bank – discussed financing of recent fertilizer projects. Co-organizer CRU’s managing consultant Steve Markey offered
an expert’s opinion on the outlook for the nitrogen, phosphates and potash fertilizer markets. The focus for the afternoon on the first day was a series of discussions on large scale fertilizer projects as part of the Technical Forum. The sessions were chaired by SABIC’s Fahad Aldubayan, general manager, urea marketing and sales. Speakers included representatives from Engro Fertilizers, Gulf Petrochemical Industries Corp, Saipem, Haldor Topsøe, Stamicarbon, Mitsubishi Heavy Industries, Hyundai Engineering & Construction and Uhde Fertilizer Technology. Highlighting this year’s theme of “Growth in Volatile Markets”, the second day’s speakers explored the issues affecting the global fertilizer industry. But each spoke with a regional focus including Africa, China, Brazil, Russia and India. Diverse perspectives on the current climate were represented in the final morning of presentations including Olam International’s exploration of the challenges and potential of the African fertilizer
production capacity and market. Zhang Rong, the secretary general of the Chinese fertilizer association, CNFA, delivered insights into how China is handling its rapidly developing nitrogen fertilizer industry as the world’s largest producer and consumer. Fabio Eduardo Meneghi, market analyst partner, speaking on behalf of Agroconsult Consultoria & Projetos, addressed the key issue of increasing Brazil’s national fertilizer supply to meet its demands for mass crop production and the necessity to rely long-term on nitrogen imports. The Russian company, SIBUR Fertilizers, offered a 10-year outlook for the country along with an exploration of the industry dynamics in the Russian Federation and fertilizer producer partners in the Ukraine and Belarus. Closing the proceedings on the last day of the commercial programme was project manager Andrew Prince from Nexant, who offered expert insights into some of the major factors contributing to volatility in the urea markets across the globe. O
Networking is key attraction for delegates The 2nd Annual GPCA Fertilizer Convention was hosted by GPCA and co-organized by CRU, a specialist in fertilizer market analysis, consulting and events. The event offers an annual trading exhibition and seminar
program which attracts senior industry professionals from both commercial and technical backgrounds. A key element of the convention is the emphasis on networking opportunities for
influential international producers, consumers, traders and operators in the industry. Networking is encouraged by the welcome reception, the networking sessions and the gala dinner, sponsored by QAFCO.
Supply chain issues come under the spotlight he Gulf region’s share of global petrochemical and chemical output is currently 16% and will grow to 20% by the year 2015, making this sector the Gulf’s second biggest export commodity. This growth has been buoyed by the rapid development of a
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world-class supply chain industry in the Gulf region. The total value of this industry in the Gulf is over $50bn annually.
It has thus become imperative to analyze the landscape and see what can be done to give this industry the proper conditions to grow rapidly and cater effectively for the massive expansion drive in petrochemical and chemical production capacities in the Gulf.
Over 300 senior supply chain professionals from the GCC region and worldwide are expected to attend the Third Supply Chain Conference, taking place at the InterContinental Hotel, Abu Dhabi, from 18-20 October 2011.This annual event will feature a high-level www.gpca.org.ae
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NEWS program dealing with the challenges facing the GCC supply chain. The theme of this year’s event “Strengthening the supply chain against challenges and threats” is designed to aid dialogue on issues related to the opportunities and challenges within this industry, including piracy, GCC customs regulation, staffing challenges, sustainability and Responsible Care, third party logistics as well as the strategies needed to mitigate the impact of long supply chains. A welcome address on the first day by Hamad Al Terkait, chairman of the GPCA’s Supply Chain Committee and president and CEO of EQUATE Petrochemical Co, will be followed by a keynote speech by Rashed Saud Al Shamsi, petrochemicals director at Abu Dhabi National Oil Co. (ADNOC) and chairman of Borouge Pte. The latter will focus on the key challenges and opportunities for the GCC supply chain both present and in the future. The second day’s sub-theme “From piracy to personnel: Facing realities and turning supply chain challenges into opportunities” will be dealt with by an equally impressive line-up of speakers including Rumaih Al-Rumaih, CEO, Saudi Railway Company (SAR), and Richard Bowker, CEO, Etihad Rail, who will assess where and how the region’s high profile rail developments will impact the petrochemical supply chain. A panel discussion on overcoming staffing challenges will be led by Bahiej Al-Biqawi, Supply Chain Management Group, Almajdouie Group and board member, Middle East Logistics Institute (MELI), and Salah Al-Kharaz, integrated supply chain leader, EQUATE Petrochemical Co. In addition to these in-depth discussions, this year there will also be a pre-conference workshop on mitigating the effects of piracy on petrochemical and chemical trade flows, as well as a planned site visit to the impressive Khalifa Port for delegates. The Third GPCA Supply Chain Conference is a major event for the GPCA and is co-organized by ICIS, the leading provider of chemical market intelligence. O www.gpca.org.ae
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Teamwork speeds GPCA’s Responsible Care journey The chemical industry’s voluntary initiative on health, safety and the environment is making rapid strides in the Gulf region thanks to a collective effort by companies and GPCA lmost two years have passed since GPCA adopted the Responsible Care Initiative and it continues to draw support from members from across the region. This support has firmly taken root in the shape of exemplary teamwork amongst the committees and task forces within GPCA. These two years also bear witness to the unmatched progress and the milestones achieved as the Responsible Care Initiative is developed and implemented. In the words of the Responsible Care Leadership Group (RCLG), the ICCA committee that oversees implementation of the Responsible Care Initiative across all regions of the globe: “In the history of ICCA and the RCLG, GPCA is the only association that has shown stunning progress at a pace never seen before in establishing the Responsible Care Initiative.” It is relevant at this time to remind our readers that RCLG granted GPCA full membership status after a unanimous vote.
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ICCA FULL STATUS SOUGHT Full membership status of the RCLG has entitled GPCA to apply for ICCA membership status too. This application was lodged immediately after obtaining the RCLG membership, resulting in the grant of observer status at the ICCA level in 2011. Observer status will change to full membership status once GPCA shows further progress in establishing not only the Responsible Care Initiative but also other ICCA-sponsored programs in the region. GPCA, through its Responsible Care Committee, is actively pursuing the implementation of these various programs and aspires to gain full ICCA membership during 2012. On the home front, the number of member companies commit-
ting to the Responsible Care Initiative has jumped from 64% to almost 81%. Needless to say, this support is very critical to the success of this initiative in the region. We are hopeful that in the coming months, the remaining companies will also sign the declaration of support. Responsible Care is a journey and the essence of this journey is the teamwork involved. We would like to bring everyone on board as we embark on this important journey. GPCA members which have signed the Declaration of Support
“In the history of ICCA and the RCLG, GPCA is the only association that has shown stunning progress” and have completed the SelfAssessments have already started using the Responsible Care logo. The secretary general of GPCA has issued Responsible Care Logo Usage Authorization packages to all signatories of the Responsible Care program. The Responsible Care logo has been registered as a GPCA trademark in six GCC countries. GPCA has also issued 12 Guiding Principles, signed by the GPCA chairman and secretary general and also by the chairman of the Responsible Care Committee (RCC). GPCA members are developing their Responsible Care programs in alignment with these guiding principles. GPCA has also launched a very interactive Responsible Care webpage. This page is open to all the members and non-members alike and carries valuable information and tools which could be used to develop and implement the Responsible Care Initiative. In addi-
tion, all training and awareness material is available on this webpage for use by anyone accessing the site. The link to this webpage is http://www.gpca.org.ae/responsiblecare/
TASK FORCE EFFORTS GPCA’s Responsible Care Committee has formed eight Task Forces. Seven of these Task Forces have been assigned to develop the codes of management practices, whereas the eighth one has been working on the development of Performance Metrics. Three of the seven codes are already finalized whereas the other four codes are in the draft stage. Performance Metrics has been issued for comments to all our full members and the final metrics are expected to be issued in the beginning of October 2011. GPCA conducted a workshop in May/June 2011 on three of the codes, namely CAER, Distribution and Product Stewardship. The two-day workshop was attended by 120 delegates across the region and was facilitated by David Sandidge and Dan Roczniak from the American Chemistry Council and supported by the vice chairman of RCC, GPCA’s Responsible Care director and Task Force leads and members. The workshop was a big success and the delegates carried out a number of group exercises which helped them to experience floor level actions essential to the implementation of these codes. O
For more information visit GPCA’s Responsible Care website at www.gpca.org.ae/responsiblecare or call Tahir Jamal Qadir, Director, Responsible Care at +971 56 7799281 or email tahir@gpca.org.ae.
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NEWS
Saudi Aramco/Dow sign mega-deal The two companies will build a $20bn petrochemical complex at Al-Jubail, with 26 units downstream from the cracker ICIS Editors
audi Arabia’s national oil company Saudi Aramco and US-based chemical major Dow Chemical have given the go-ahead for the creation of a huge joint venture petrochemicals complex at Al-Jubail. The $20bn complex, to be known as Sadara Chemical, will comprise 26 production units and deliver 3m tonnes/year of chemicals when it comes fully onstream in 2016. The two partners announced that it will be the largest petrochemical complex ever built in one stage. At its heart will be a 1.5m tonnes/year mixed ethaneand liquids-fed ethylene unit. Downstream products include polyurethanes (isocyanates, polyether polyols), propylene oxide (PO), propylene glycol, elastomers, linear low density polyethylene (LLDPE), low density polyethylene (LDPE), glycol ethers and amines. Dow and Saudi Aramco expect to earn $500m/year each within five years of start-up. They have planned the production slate to meet the requirements of emerging market growth, but also along product lines that are important to Saudi Arabia’s industrial development. “This enterprise will play a key role in the Kingdom’s industrial and economic diversification, while contributing to the creation of thousands of high-quality jobs,” said Saudi Aramco CEO, Khalid Al-Falih, when the final invest-
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Al-Falih: the project will play a key role in the Kingdom’s diversification ment decision was officially announced late in July. He added that “many of Sadara’s products will be produced for the very first time in Saudi Arabia.” “It will enable significant development of the country’s conversion industry, thereby supporting Saudi Arabia’s ambition to be a magnet for downstream manufacturing investments that add significant value to the Kingdom’s hydrocarbon resources,” he added. Dow chairman, president and CEO Andrew Liveris called the agreement the “right economic ownership model with the right partner. It is designed to capture growth in the rapidly growing sectors of energy, transportation and infrastructure and consumer
products, by creating a manufacturing hub that will provide a differentiated product slate and an advantaged cost position.”
“Many of Sadara’s products will be produced for the very first time in Saudi Arabia” Saudi Aramco has been working since 2006 to extend downstream from its refineries into petrochemicals. It has already brought onstream a major complex at Rabigh in collaboration with Japan’s Sumitomo Chemical.
An initial public offering (IPO) of 35% equity in the Sadara venture is planned from 2013-14 to mitigate some of the project risk. After this, Saudi Aramco and Dow will be equal partners in the venture. Dow will market products outside the Middle East, while Sadara itself will be responsible for marketing in a local zone of Middle East eight countries. Already contracts are being let on the complex. Fluor has been awarded a reimbursable engineering, procurement and construction management (EPCM) contract covering all of the utilities and offsites at the complex. Daelim Industrial has won the $920m contract to build the main mixedfeed cracker. Construction will begin immediately and the first production units will come on line in the second half of 2015, with all units expected to be up and running in 2016. Once operational, Sadara is expected to deliver annual revenues of approximately $10bn within a few years of operation and generate thousands of direct and indirect employment opportunities through the complex and related investments in downstream value parks. O Belgium’s Solvay and Sadara Chemical will jointly build a hydrogen peroxide plant at the complex, to come on stream in the second half of 2015. Output will be used for production of propylene oxide, which, in turn, goes into production of propylene glycol and polyurethanes. O
Saudi Polymers ready to start up by year end, says CEO Saudi Polymers is within weeks of starting up its petrochemicals project at Al-Jubail in Saudi Arabia, according to Peter Cella, CEO of Chevron Phillips Chemical, one of the partners in the joint venture complex. Cella said the start-up is 4 | GPCA INSIGHT | October 2011
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“literally right upon us”. “We are in the final weeks of start up of our major Saudi Polymers project, which is a world scale 1.2m tonne/year cracker with associated derivatives, primarily polyethylene [PE] but also polypropylene [PP] and we
will be starting that facility up early in the fourth quarter,” Cella continued. The Al-Jubail site will be capable of producing 1.1m tonnes/year of polyethylene (PE), 400,000 tonnes/year of polypropylene (PP), 200,000
tonnes/year of polystyrene (PS) and 100,000 tonnes/year of 1-hexene, Cella said. Project construction began in 2008. Saudi Polymers is a joint venture between CP Chem (35%) and Saudi Arabia’s National Petrochemical (65%). www.gpca.org.ae
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FOCUS PRODUCT IN FOCUS
Polycarbonate shines The Gulf region has just added its first production unit for this versatile engineering thermoplastic which finds numerous applications in diverse end-use sectors, especially automotive, glazing and electronics Jeffrey Plotkin and Ria Harracksingh, NEXANT
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MELT TECHNOLOGY In the melt process, the carbonate functionality is introduced into the polymer backbone by diphenyl carbonate (DPC). This breakthrough was important as it removed the need to use extremely toxic phosgene. Since the initial development of “non-phosgene” polycarbonate technology by GE Plastics (now SABIC Innovative Plastics), several other companies, including Bayer, Asahi Chemical, Mitsubishi Chemical and Idemitsu have developed their own versions of non-phosgene technology. While all of these routes use DPC to introduce the carbonate group into the polymer backbone via melt www.gpca.org.ae
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Demand by sector
Automotive 13%
Capacity by region
Other 20% Sheet/glazing 18%
Optical Media 28%
Electrical 21%
polymerization, the means to produce the DPC are all different. Interestingly, Shell Chemicals, not a polycarbonate producer, has recently patented novel technology for making DPC as well. The toxicity cloud hanging over BPA (some believe that BPA is an endocrine disruptor) has cast a shadow over polycarbonate, especially in those applications that involve food contact. As a competitive response, polycarbonate producers are exploring new nonBPA containing resins. One substitute monomer for BPA in particular that has received a lot of attention is sugar-derived isosorbide. Not only would an isosorbide-containing polycarbonate be BPA-free, but it could also allow this new resin to be marketed as a “green” plastic. Nexant has studied the technology and economics of making isosorbide-based polycarbonate and will publish results in a new PERP report, 09/10-7, Polycarbonate. SABIC and Bayer are the two dominant forces in the polycarbonate business today. Both companies together own over half of the world’s polycarbonate capacity. Teijin, Dow Chemical and Mitsubishi Chemical are also key competitors but much smaller than the big two.
Global capacity is broken down as shown in the diagram above. Asia makes up almost half of global polycarbonate capacity. The Middle East is starting up this region’s first polycarbonate capacity in 2011
“Nexant expects demand will grow by an average of 3.9%/year to 4.2m tonnes by 2016”
with SABIC’s joint venture Saudi Kayan’s 260 000 tonne/year plant in Saudi Arabia coming on-stream.
ROBUST GROWTH Polycarbonate has historically enjoyed robust growth despite its comparatively high price due to its superb performance. With the recession, several end-use sectors were hit hard and the polycarbonate sector, especially in developed regions such as North America and Europe, suffered. The sector is expected to make a strong recovery, growing above global GDP rates but the market drivers will be very different to those pre-recession. Optical media, construction and electrical/electronic applications were the fastest growing sectors
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olycarbonate is a wonderful material. It is impact resistant, thermally stable, optically very clear, dimensionally stable, scratch resistant and has good electrical insulating properties – and all delivered at a reasonable price. Owing to this unique package of properties, polycarbonate finds use in a wide range of end-uses including optical media, various automotive applications, glazing, medical equipment and electrical and electronic uses. Global demand is estimated at around 3.5m tonnes/year in 2011. Nexant expects demand will grow by an average of 3.9%/year to 4.2m tonnes by 2016. The conventional production technology for manufacturing polycarbonate is via a two-phase interfacial reaction of bisphenol-A (BPA) and phosgene. This approach was the only commercial route to making polycarbonate until the early 1990s when GE Plastics developed a non-phosgene route. The GE Plastics route was termed “melt” technology because no solvent is used.
GLOBAL POLYCARBONATE MARKET AND CAPACITY BREAKDOWNS 2011
Europe 27%
Asia Pacific 48%
North America 19%
until 2006. Post-2011, recovery in the automotive and electrical segments is expected to drive demand for polycarbonate globally. There is significant potential in the automotive industry for increased use of the polymer in glazing in cars. Both SABIC and Bayer are working with the major automotive producers on concept cars that have polycarbonate side, rear and panoramic roofs. Automotive manufacturers like polycarbonate as a replacement for glass, as it allows more dramatic designs and saves weight, adding to fuel efficiency. As the housing industry recovers, construction is also expected to return as a key market driver. Additionally in recent years, polycarbonate’s use in the medical industry has increased due in most part to high quality clarity and high temperature resistance (enabling ease of sterilization) and this end-use market is expected to contribute to polycarbonate’s growth. Polycarbonate use in optical media is expected to decline with the growing preference of consumers to electronically download music and movies. O Jeffrey Plotkin is vice president at Nexant (jplotkin@nexant.com); Ria Harracksingh is an analyst at Nexant (rharracksingh@nexant.com).
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INTERVIEW
FACE THE FACTS
Talent plays key role ICIS editor John Baker interviews Maha Mulla Hussain, chairman of GPCA’s HR Committee and chairman & managing director of PIC, on the thinking behind GPCA’s first Talent meeting in October and what she sees as the main HR challenges This is the first GPCA Talent meeting – can you explain why GPCA decided to organize such an event and why human resources (HR) has been identified as an important issue for the Middle East petrochemical industry? From the start of GPCA as an organization, HR was identified as a major challenge in the Gulf area because of the Gulf Cooperation Council’s (GCC) growth strategy, not only locally but globally. The petrochemical industry is a vital contributor to our national economies; hence HR has a major role in building the organizational capabilities that are flexible to meet such growth strategies. We see GPCA as the right venue to capitalize on and derive synergies from the efforts and actionable plans considered by our HR professionals in the petrochemical arena. How long have you been working on the meeting and who have been the key players in putting together the extensive program? What do you regard as the key success criteria for the meeting? We started in 2010 as part of the 2011 goal setting for the GPCA HR Committee. GPCA HR Committee members laid down the extensive program, believing that increasing networking and learning from each other are key criteria of success. The intent of this event is to encourage knowledge transfer of best practices deriving from corporate and hands-on experience of the major players in the industry. How does the Talent event align with the ongoing work of the GPCA HR committee? What are the committee’s main priorities and goals? The Committee’s main goals are closely linked to the GPCA’s own mission and strategic goals, mainly to create a platform to share www.gpca.org.ae
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“We aim to understand what the world’s bestperforming companies do well and benchmark GPCA members against that. We will explore areas for improvement” MAHA MULLA HUSSAIN
GPCA HR Committee chairman and chairman and managing director of PIC
information and share best practice and encourage relations with regional and international entities. The Talent event objectives and program are aligned with, and all the planned sessions are cascaded down from, such strategic goals. The GPCA HR Committee ensured such correlation to enable this event to offer added value to all participating entities. Are the any special issues that Middle East companies have to address in HR terms – perhaps in terms of talent availability, training,
staff retention, senior management recognition, etc? Talent availability and staff retention have always been special issues to Middle East companies. This is driven by the growth mode in this region and also by the ambitious strategies that this region has for growing into more downstream specialty sectors and into a global presence. This puts the need on workers to be more creative, collaborative and willing to take risks. This growth strategy also gives HR the challenge to build new talent supply chains that extend outside the company to include outsourcing relationships, for example. The GPCA Talent Convention sheds light on such issues and the need to bring HR into the strategic partnership. Does the fact that many producers and GPCA members are stateowned companies and/or joint ventures bring any special issues to HR strategy and operations? Yes, being government companies brings with it national targets, such as nationalization of the workforce, and being joint ventures brings the task of merging different cultures and practices to form a unique identity. In terms of aligning the HR approach to overall company strategy to achieve agile and peak performance, what are the key things to focus on? Where do you think the main weaknesses lie at the moment? What can Middle East producers learn that will improve their performance in the short term and longer term? The key things for HR to focus on are new knowledge, competencies and skills such as cross-cultural fluency, business acumen and analytical abilities, and how to deliver efficient and effective service on a more global scale. This
requires HR professionals to understand the business needs and design HR programs that are aligned with those needs to contribute in the effective decision-making on an organizational level. In your mind, are petrochemical producers in the Middle East on a par with global standards in the way they run and organize HR and their company structures? What best practices developed in the Middle East might be applicable to the wider world? In some areas we are on par with global standards, but we still lack in some areas such as effective implementation of strategic partnership concepts or coaching and mentoring concepts. The best practice the Middle East offers and which might be applicable worldwide is creating a unique identity in joint venture companies. You mention the launch of an HR benchmark at the Talent event – can you explain what this is, how it will work, what companies need to do to take part, and what it is expected to achieve? We aim to understand what the world’s best-performing companies do well and benchmark GPCA member against that. We will explore areas for improvement, where GPCA members have scope for further adoption of practices from the world’s best-performing organizations. GPCA will liaise with members for participation and collection of details. GPCA members that participate can order the report from the administrator. This will definitely increase the effectiveness and efficiency of GPCA members as a whole, not only in their HR practices but also in their business performance vis-a-vis their talent capabilities for the present and the future. O October 2011 | GPCA INSIGHT | 7
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