cens logo

Saudi PPPP 2014 Offers Lucrative Business Opportunities as Economy Restructures

A growing population and burgeoning economy spur demand for packaging and plastics in Saudi Arabia

Mar 04, 2014 | By Steve Chuang

By STEVE CHUANG

Saudi Arabia is working hard to restructure its economy toward more industrial production and less dependence on the oil sector, and this effort was reflected in Saudi PPPP 2014, a business event combining two exhibitions: the 12th International Trade Exhibition for Printing & Packaging Technologies (Saudi Print & Pack) and the 12th International Plastics & Petrochemicals Trade Fair (Saudi Plastics & Petrochem). The two shows sparkled with business opportunities in the emerging Saudi marketplace.

CENS took part in Saudi PPPP for the first time in 2014.CENS took part in Saudi PPPP for the first time in 2014.

Organized by the Riyadh Exhibition Company, Saudi PPPP (previously known as Saudi PPSG) was held on February 17-20 at the Riyadh International Convention & Exhibition Center (RICEC), a spectacular exhibition facility with 15,000 square meters of indoor exhibition space and a 15,000-square-meter outdoor area.

This show lived up to its reputation as a must-go exhibition for the plastic, petrochemical, and printing and packaging industries of  the EMEA (Europe, Middle East, and Africa) bloc by attracting 512 exhibitors from 27 different countries including Bahrain, Jordan, Sweden, Belgium, Lebanon, Italy, the U.K., Syria, Denmark, the Netherlands, France, Qatar, and Switzerland.

The show drew participation and support from several foreign governmental and industrial organizations, including the Austrian Federal Economic Chamber, Egypt Expo & Convention Authority, Association of the German Trade Fair Industry and The German Engineering Association, Italian Trade Commission, Korea Plastics Processing Machine Industry Cooperative, and Turkey's Ministry of Economy. Ten national pavilions were set up to accommodate exhibits by companies from Austria, India, Turkey, China, Italy, the UAE, Egypt, South Korea, Germany, and Taiwan.

The Austria Pavilion (organized by the Austrian Federal Economic Chamber)The Austria Pavilion (organized by the Austrian Federal Economic Chamber)
The Egypt Pavilion (organized by the Egypt Expo & Convention Authority)The Egypt Pavilion (organized by the Egypt Expo & Convention Authority)

The organizer had earlier expected to see an increase in visitors compared with the 2011 edition of the show, mainly because of the stronger demand for machinery resulting from the restructuring of the Saudi economy.

Dominant Polymer Maker in the Gulf
Saudi Arabia has been striving for years to transform itself from world's largest oil producer into a leading olefin and polymer manufacturer, a sensible move given the fact that falling oil prices had a severe impact on nearly all of its non-oil sectors during the global financial turbulence of 2009. Domestic consumer spending and investment faded away, and the country's real GDP growth managed only a minuscule 0.2%.

Since oil production, monopolized almost entirely by the government, makes up nearly 30% of Saudi Arabia's economy and contributes 80-90% of the government's revenue, part of the country's economic diversification strategy is to set up more industrial parks and increase the involvement of private enterprises in refineries and polymer production. These efforts have paid off; the country is now the largest maker of such products, and one of the biggest markets for plastics and polymers, in the Gulf Cooperation Council (GCC) area.

According to statistics from the Gulf Petrochemicals & Chemical Association, the area's output of PE (polyethylene), including LDPE, HDPE, and LLDPE, for instance, reached 11.54 million tons in 2012, of which Saudi Arabia accounted for 7.88 million tons. Saudi Arabia also dominated the GCC's PP (polypropylene) sector by contributing 4.965 million tons of production in 2012, 29.5% more than in 2007, to the area's overall output of 6.225 million tons.

In terms of demand, Saudi Arabia consumed nearly 500,000 tons of PVC (polyvinyl chloride) in 2012, mostly for pipe production, while market demand in the GCC as a whole totaled some 707,000 tons; and over 120,000 tons of PS (polystyrene), largely for packaging, out of the GCC's overall consumption of 156,000 tons.

The Riyadh Exhibition Co. emphasized that plastic is increasingly used in packaging to replace conventional materials such as glass and metal in Saudi Arabia, and that local market demand for safe and sustainable packaging solutions is growing rapidly. Demand is driven especially by food packaging requirements at a time when the country's food consumption is forecast to grow steadily at a compound annual growth rate of 4.6% to reach 51.1 million tons by 2015. Saudi Arabia now supplies 70% of the packaging market in the GCC bloc, and is likely to see its domestic market swell by 15% this year.

Coincidentally, the outlook for the country's printing sector is also bright, driven mainly by stable economic growth, rising government expenditure, increasing cultural and education activities, and soaring retail sales. The value of the country's printing market has reached US$800 million a year, giving market observers good reason to believe the local printing sector will grow by 8% this year in terms of output value. This will mean more spending on equipment to expand capacity. Another happy fact is that the local population is increasing steadily, showing an ever-growing demand for newspapers and magazines.

Complete Lineup on Display
At the show, complete lineups of plastic and polymer materials, products, and machinery were showcased in wall-free exhibition areas totaling over 15,000 square meter under the four roofs of the RICEC.

Bottle-filling lines enjoy considerable business potential in Saudi Arabia.Bottle-filling lines enjoy considerable business potential in Saudi Arabia.

The exhibits included all kinds of chemicals, raw materials, supplies, and compounds, as well as chemical engineering systems, whole-plant equipment, filter systems, blenders, measuring systems, grinders, heat exchange equipment, pumps, motors, valves, plastic furniture, healthcare products, injection and extrusion systems, packaging lines, packaging materials, paper production equipment, wrapping machines, cutting and folding machines, digital direct printing machines, large format poster printers, pre-press hardware, silk screen printing machines, and stitching machines.

Opportunities Everywhere
Twenty-two Taiwanese exhibitors showed off their latest offerings in the Taiwanese Pavilion, organized by Taiwan External Trade Development Council (TAITRA), a semi-official export promoter, at the central area of the Hall 2. Most were delighted with the success of Saudi PPPP 2014 as a business-to-business platform.

The Taiwan Pavilion (organized by TAITRA) was located in Hall 2.The Taiwan Pavilion (organized by TAITRA) was located in Hall 2.

Bag-making machines were among the hottest products at the show, thanks to the growing demand for packaging and food packing that result from the growing population and burgeoning economy. The machines on show included flexible packaging machines, PVC pipe-making machines, and recycling equipment, and booths displaying such equipment were crowded with interested buyers.

One of the exhibitors of these products was Avita Machinery Co.< Ltd. of  Taiwan, a supplier of printing machines and blown film machines. Representatives manning the company's booth, including its chairman, David Chen, were kept busy introducing the AV-360TP-H T-shirt bag making machine, which is noted for its high performance, smooth film movement, low power consumption, and easy maintenance and cleaning, to a constant flow of visitors during the four-day show. A local buyer reportedly placed an order for the machine during the show.

Interested buyers flocked to Avita Machinery’s booth.Interested buyers flocked to Avita Machinery’s booth.

Jerry Yang, Avita's young sales representative and engineer, said in an upbeat mood in a brief interview with CENS, “This is my first time to represent my company at this exhibition, and it's better than I expected because it is full of buyers in need of bag making machines. That's why we've been kept so busy greeting interested visitors.”

Also excited about great business potential brought by buyers at the show was Zeyad El-Aga, engineer and sales manager from Taiwan Plastic Machinery Center Co., Ltd., a supplier of plastic PE blow film machines and plastic pipe and profile machines. A regular participant in Saudi PPPP, he felt that the number of visitors was up significantly this year, making the show a more promising marketplace. A scheduled short interview with El-Aga was repeatedly delayed and finally concluded half-way through because of the uninterrupted demand on his time by buyers visiting his booth.

Zeyad El-Aga from the Taiwan Plastic Machinery Center Co. (right) shakes hands with a local customer after interrupting his CENS interview.Zeyad El-Aga from the Taiwan Plastic Machinery Center Co. (right) shakes hands with a local customer after interrupting his CENS interview.

A further proof of the show's usefulness a note left on the last day of the show at the booth of Lung Meng Machinery Co., Ltd. of Taiwan, a specialized maker of zipper profile extruders, bag-making machines, and pre-opened bag-making machines, indicating that its high-speed blown film machine, coded LM-AH40T, had been "ordered."  The machine had attracted intense attention from visitors interested in the incredible productivity achieved by a built-in AC inverter drive and high torque gear box with reinforced lubrication system. Company representatives spent so much time talking to potential buyers that they had none to spare for an interview.

Lung Meng’s LM-AH40T high-speed blown film machine was reportedly ordered during the show.Lung Meng’s LM-AH40T high-speed blown film machine was reportedly ordered during the show.

CENS, the largest and oldest Taiwanese export media, traveled to Saudi PPPP for the first time this year. There it met numerous impressive buyers while distributing its publications, including Taiwan Machinery, Taiwan Plastic & Rubber, Package and Printing Machinery Special and Show Express (in Arabic), from its own booth.

Buyers filling out inquiry forms at the CENS boothBuyers filling out inquiry forms at the CENS booth

One of the buyers met by the CENS representative was Essam Abanmy from the Saudi lubricant distributor Energy Birds, who visited the CENS's booth several times to make sure that his requirements could be met after making an inquiry about special products on the first day of the show. He eventually gave CENS a high rating as a reliable, efficient business matchmaker and expressed his trust in Taiwanese suppliers after CENS helped him fill his needs on the spot.

Another local buyer, the owner of AL Bustan Nurseries Co., who declined to have his name mentioned in this report, asked CENS to match his company with “Taiwan's best supplier” of garden supplies and related products. Backed by its large supplier database, CENS easily filled this request during the show.

Buyers were happy with CENS’s publications and online buyer services.Buyers were happy with CENS’s publications and online buyer services.

The next Saudi PPPP is scheduled for Feb. 22~25, 2016, at the same place, where in even bigger bigger turnout and a brighter prospects are expected.



Exhibition Highlights

Koelnmesse (Beijing) Co., Ltd.

Announcement on Postponement of China International Hardware Show 2020 (CIHS 2020)

Jul 10, 2020

In view of the continuous spreading of COVID-19 all over the world and the latest epidemic prevention requirements of China and the government of Shanghai, in order to guarantee the health and safety of exhibitors, purchasers and professional visitors, China National Hardware Association and Koelnmesse have prudently decided to postpone China International Hardware Show 2020 (CIHS 2020) from Augu...


Automechanika Shanghai 2020 creates channels for cross-sector collaboration</h2>

Automechanika Shanghai 2020 creates channels for cross-sector collaboration

Jun 16, 2020

This year, Automechanika Shanghai continues to serve the entire automotive value chain by offering opportunities for information exchange, marketing, trade and education. Both vertically and horizontally, from OE, vehicle production to the aftermarket, it incorporates all elements of manufacturing, supply networks, services, new business models and information technology. Companies across the...


Messe Frankfurt (Shanghai) Co Ltd

CAPAS defers to 2021

Apr 20, 2020

Following the Chinese Government’s initiatives to prevent and control the COVID-19 outbreak, the organisers of the Chengdu International Trade Fair for Automotive Parts and Aftermarket Services (CAPAS) have announced the defer of the show’s 2020 edition. The fair, originally scheduled from 21 to 23 May 2020, will now be held from 20 to 22 May 2021. In China, the State Council issued an announc...



Industry In-Focus

SINOSTEEL Corporation: Rising price in Steel</h2>

SINOSTEEL Corporation: Rising price in Steel

Jun 05, 2020

Brazil’s new crown pneumonia epidemic has rapidly increased. Brazil’s Vale, the world’s largest iron ore producer, is facing an out-of-control impact. The market is worried that iron ore production and sales will be affected. new highs. Experts from Sinosteel (2002) evaluated that steel prices will rise steadily under the effect of rising costs, with a promising outlook. According to a legal p...


Apple Invests Millions in LED Plant in Taiwan</h2>

Apple Invests Millions in LED Plant in Taiwan

Jun 01, 2020

Apple is considering to invest over US$330 million in a factory in northern Taiwan to manufacture both LED and micro-LED displays for its iPhones, iPads, MacBooks, and other new devices. Apple is teaming up on the new factory with Epistar, Taiwan's top LED producer, and Taiwanese LCD panel maker, AU Optronics. The plant will be located in the Longtan branch of the Hsinchu Science Park and Appl...


Taiwan Machinery Was Applauded in COVID-19</h2>

Taiwan Machinery Was Applauded in COVID-19

May 18, 2020

What the epidemic showed was the amazing flexibility of Taiwan's machine tool industry. Taiwan, which has allowed the semiconductor industry to specialize in the past, has finally realized that these machine tool industries with amazing strength are the "invisible champions" of Taiwan's economy. In early February, three companies -- Habor Precision, Tongtai Machine & Tool and Taiwan Takisawa -...



Supplier News

With professional technics and rigorous quality control, Kung Hsing gains high-reputation in the industry</h2>

With professional technics and rigorous quality control, Kung Hsing gains high-reputation in the industry

Jul 23, 2020

Kung Hsing Plastic Machinery Co., LTD., founded in 1972, is the brainchild of the company President Tsai Chin-lien’s over 48 years of experience in designing and producing extrusion machines. The firm stood by its belief to uphold integrity and offer the best quality and services, eventually becoming a leader in the extrusion machinery industry in Taiwan. Kung Hsing currently has two factories; t...

KUNG HSING PLASTIC MACHINERY CO., LTD.


INTYPE ENTERPRISE CO., LTD. TUNG TAI MACHINE WORKS CO., LTD. </h2>

INTYPE ENTERPRISE CO., LTD. TUNG TAI MACHINE WORKS CO., LTD.

Jul 21, 2020

■ Tseng Lung-nan Intype Enterprise has built up 55 years of experience in producing extruders, though the firm is placing greater consideration on rapidly degrading of the global environment. In the past 20 years, Intype has become an active contributor to building up a global ecosystem, enabling them to reuse the products manufactured by their own extruders and avoid further waste. The firm t...

INTYPE ENTERPRISE CO., LTD.


YFCM Carbon Fiber Driveshaft Lauded in the field of Modified Cars for its Flexibility </h2>

YFCM Carbon Fiber Driveshaft Lauded in the field of Modified Cars for its Flexibility

Jul 14, 2020

■Hsiao Yung-le Yifeng Technology Co., Ltd. specializes in the research and development of carbon fiber transmission shafts and the manufacture of carbon fiber related products.The carbon fiber material has the characteristics of lightweight, impact resistance, fatigue resistance, and corrosion, and chemical stability is quite high. The product type is increasing in the extensive range with an ...

YI FENG COMPOSITE MATERIAL TECHNOLOGY CO., LTD.



Insiders' Views

Caption: Pictured from front row, third right, Changhua County Government Economic Affairs Department Director Liu Yu-ping, County Magistrate Wang Huei-mei, Secretary Chen Bo-tsun pose in front of the exhibition booth. (Photo provided by CHCIA)

Changhua County Government Shores up Biz-Matching to Global Buyers

Nov 18, 2019

■Yang Feng-Chun In a bid to assist manufacturers in Changhua County to expand their market reach overseas against severe competition in the globalized market, Changhua County Government has been an active player in pushing for a makeover and innovation of its local small and medium-sized enterprises. This is done in hopes of establishing stronger connection with international markets. An ex...


Paul Master offers high-quality chassis and engines parts for passenger cars, trucks, and industrial trucks. (Photo courtesy of Paul Master)

Paul Master Builds Reputation with Auto Chassis and Engine Parts

Nov 18, 2019

Founded in 1980, Paul Master Auto Parts Co. is headquartered in Taiwan, a professional manufacturer of chassis and engines parts for passenger cars, trucks, and industrial trucks including forklifts. General Manager Terry Liang said the company has its own professional design department, which provides customized products and specifications for global buyers, including automobile steering and...

PAUL MASTER AUTO PARTS CO.


Nan Hoang Traffic Instrument Co., Ltd.</h2><p class='subtitle'>Taiwan First brakes Technology Co., Ltd. </p>

Nan Hoang Traffic Instrument Co., Ltd.

Taiwan First brakes Technology Co., Ltd.

Sep 04, 2019

Nan Hoang Traffic Instrument Co., Ltd is one of the major manufacturers of automobile friction materials in Taiwan and globally. Chairman Austin Cheng has implemented the double-arrow strategy this year - own brand of “YangPo” is adopted to focus on global channels while the “NHC brand focuses on improving market shares in global markets, such as Europe, America, Asia, Australia, and the Middle E...



Industry Reports

K, the leading global plastic and rubber trade fair (Photo courtesy of Messe Düsseldorf/ctillmann)

K, The World's Leading Trade Fair for Plastic and Rubber Industry

Jul 24, 2020

2019 K Show, the leading global trade fair for the plastics and rubber industry, had been held in Düsseldorf on 16-23 October, 2019. There were 3,330 exhibitors from 63 nations proved impressively: plastics continue to be an innovative, indispensable material. But they also unanimously underscored the necessity of having operational circular economies along the complete material chain and to this...


Photo courtesy of CENS

Digital Healthcare & Technology at the Heart of Las Vegas CES 2020

Jul 14, 2020

■ Hubert Chih The number of healthcare exhibitors at the 2020 CES in Las Vegas increased significantly by 23% from 2019. According to the analysis and report by the CES organizer, digital healthcare and technology were the focus in the healthcare exhibition. In addition to the continued expansion of healthcare coverage, the reduction of healthcare costs, the improvement of effectiveness and th...


The Taiwan Hardware Show sees global buyer attendance. (Photo provided by Kaigo Co.)

Taiwan's Hand Tools Seeking Opportunities Amid Global Crisis

Jul 10, 2020

Due to the COVID-19 pandemic sweeping the globe, most of the international hardware shows slated for this year has been moved to 2021. However, as Taiwan’s efforts combating the new virus has proven to be successful, the 2020 Taiwan Hardware Show (THS) will continue as scheduled, beginning on Oct. 13 and ending on the 15th at the Taichung International Exhibition Center, thus becoming the only sh...