Date(s) - 06 March 2011
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Addressing a number of issues relevant to the petrochemical industry, EQUATE President & CEO Hamad Al-Terkait was hosted at the Media Salon, which is a periodical discussion held by Arab Media Forum.
During the event, Al-Terkait noted that Kuwait’s petrochemical industry with its 5 million ton annual production is relatively small when compared to the Gulf’s overall current capacity of 105 million tons annually.
Al-Terkait added that launching major petrochemical ventures are critical for Kuwait’s overall industrial and economic development, urging decision makers to expedite the launch of Olefins III.
Al-Terkait noted that the cancellation of the K-Dow deal was not based on economic feasibility, yet it was incorrectly politicized which led to Kuwait missing such a valuable opportunity.
Feedstock limitations have prevented bringing up any new petrochemical ventures or expansions in Kuwait, so it makes sense to either acquire existing plants or build new ones outside Kuwait, explained Al-Terkait.
EQUATE’s plants, he noted, are not running at their full capacity due to feedstock issues, if that issue was to be resolved then profits would increase by 10-15%.
When EQUATE was established, nationals comprised less than 30% of manpower, now they represent over 56% with some departments having a Kuwaitization rate of over 90%, noted Al-Terkait.
Al-Terkait emphasized that privatization would be beneficial for Kuwait when applied properly, adding that it would be possible to stipulate having a certain percentage of national manpower in each sector before it is privatized.
Al-Terkait highlighted that EQUATE contributes to Kuwaiti economy with over USD 1 billion annually in the form of salaries, contracts, payments for services and other matters, as well as over 80% of its contracts are handled by local Kuwaiti contractors.
EQUATE devotes all possible resources to ensure Kuwait’s overall sustainability, stressed Al-Terkait.