Saudi-Japanese

Fruitful Cooperation

Japanese-Saudi Business Opportunities ForumTOKYO 31st Jan – 2nd Feb 2012

Eng. Saleh F. Al NazhaCOO, 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

� 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 Highlights

11ststIndustrialization Joint-Stock Wholly Owned by Private Sector 1985

22ndndLargest Global Producer of Titanium Dioxide

22ndndLargest Saudi Industrial & Petrochemical Company

11ststSaudi Company of The Year 2008

11stst

TopTop Project Finance Award 2006

Best Work Environment in Saudi Petrochemicals 2008 & 2009

AwardAward Fastest of Growing Companies Award

TASNEE Main Recognition

Award Award Social Responsibility Uniqueness

TASNEE Main Businesses

400 KTA

HDPE

400 KTA

LDPE

720 KTA

PP

TASNEE PlasticTASNEE Chemicals

80 KTA

SAP

160 KTAButyl

Acrylate

330 KTAn-Butanol

TASNEE Acrylic Acid

700 KTA

TiO2

120 KTA

Polyol

TASNEE Polyol

ACQUISTION OF

LYONDELL (TiO2) BY

CRISTAL 2007

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

START-UP OF PDH/PP

PROJECT 2004

TASNEE AQUARIED

TASNEE PETCHEM 2006

CRACKER STARTUP 2008

PE PLANT STRATUP 2009

TASNEE Performance

Diversified

Petrochemicals

Chemicals

Services Metals

SPCSEPC

SAACSAMCO

TASNEE Portfolio

� 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 Petrochemical Marketing

Riyadh Headquarter Manufacturing plant Technical Centre Sales Office

TASNEE KSA Presence

Riyadh

Jeddah Mecca

Taif

Jizan

Abha

Tabuk

Duba

Sakakah

Arar

Yanbu

Madina

Ha‘il

Buraydah

Dammam

Jubail

Khafji

Hofuf

SAUDI ARABIA

YEMEN

OMAN

U.A.E.

QATAR

BAHRAIN

KUWAIT

IRAQJORDAN

EGYPT

SUDAN

IRAN

Red

Sea

Arabian Sea

Gulf of Oman

Arabian Gulf

Rabigh

KSA

2004

UAEOman

Qatar

BahrainKuwait

Syria

JordanLebanon

Iran

IraqYemen

2007 2008 2009 2010 2005 Kenya

TansaniaUganda

Ethiopia

Pakistan

India

Sri LankaNepalBangladesh

2006

MaroccoTunisEgyptSudanLibyaAlgeria

ChinaHongkongVietnamMyanmarTaiwanPhilippines

MalaysiaIndonesiaThailand

South AfricaMosambiqueMadagascarMauritius

NigeriaSenegalIvory CoastCameronGhanaCongo

TogoBeninMali NigerAngolaGuinea

Offices

Riyadh

Headquarter

Sri Lanka

Tunis

Singapore

Marketing Global NetworkPresence in 52 Countries

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

CRISTAL Global at a Glance

14

TASNEE Global Presence (Tio2)

• Introduction to TASNEE

• Japan & Saudi Arabia Trade

• The Industrial Clusters in Japan and Saudi Arabia

• Potential Opportunities for 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

Key Facts of Saudi & Japanese Collaboration

Source: Japan Customs

• Introduction to TASNEE

• Japan & Saudi Arabia Trade

• The Industrial Clusters in Japan and Saudi Arabia

• Potential Opportunities for Collaboration

o Chemical industry in Japan produces large added value with high value-

added ratio, even though there are many small and mid-sized chemical

companies

o This highly integrated cluster has generated high performance chemical

products

The Industrial Clusters in Japan

0%

40%

30%

20%

10%

50%

Petroleum/Coal

Non-Ferrous Metals

Steel

Ceramics

Chemicals

Plastics/Rubber

Clothing/Textile

Paper/Pulp/Printing

Metalware

MachineryElectronic/IT

Transportequipments

Food/Others

Upstream Downstream

(Va

lue

-Ad

de

d r

ati

o)

Added

Va

lue

/Sh

ipm

en

t

Industrial Clusters in Japan

Source: METI

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

The Industrial Clusters Program in Saudi Arabia

Crude oil

Gas

Refinery

BasicRaw material

Polyethylene

CommodityChemicals

Polypropylene

Polystyrene

Basic Chemicals

Aromatics

Ammonia

Methanol

Performance Chemicals

Technical Chemicals

ABS

Synthetic Rubber

Polycarbonate

Polyol

MDI/PU

Carbon Fiber

Acrylates

Ethylene Glycol

Evolution of the Saudi Arabia Chemicals Industry

Kingdom’s Economic Growth by Sector

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

The targeted Saudi industrial clusters will serve the potential industrial

growth in the Kingdom and will substitute the imports

• 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 Compounding

o Specialty films

o Pharma /Health care

o Water Treatment

o Renewable energy

o Synthetic rubber and related

industries (Tires/Auto components )

o Specialty chemicals

o Strategic acquisitions

o Automotive industry

o Power generation

o High-Tech manufacturing

o Industrial Research &Training

Successful Stories for Saudi & Japanese Collaboration

50ORIX 20% & ORIX Leasing Pakistan Ltd 10%

Trade Develop’t & Invest’t 32%

Saudi Investment Bank 28%

Other Saudi 10%

60April 2001Lease Financing & Car Leasing

Saudi ORIX Leasing Co.

44Tamer & other Saudi 79.18%

Sankyo 10.41%

Yamanouchi 10.41%

107July 1996MedicineSaudi Arabian-Japanese Pharmaceutical Co. Ltd. (SAJA)

300T. Alireza & other Saudi 51%

Sumitomo Metal 33%

Sumitomo Corp 16%

200August 1978Steel PipesNational Pipe Co. Ltd. (NPC)

455SABIC 50%

JSMC 50%

259February 1983Chemical Grade AA Methanol

Saudi Methanol Co. (AR-RAZI)

SIPC 75%

JAMC 35%

330March 2002Methanol & Butanediol

International Methanol Co. (IMC)

919SABIC 50%

SPDC 50%

1,890May 1981Production of PE & EG

Eastern Petrochemical Co. (SHARQ)

EmployeesInvestorsInvestment

(SR mil)

EstablishBusiness Line

Company Name

Successful Stories for Saudi & Japanese Collaboration

50Marubeni 30%

JGC 25%

Itoehu 20.1%

Acwa Power Project 24.9%

5August 2005Water, Electricity and Steam

RAWEC (RabighArabian Water & Electricity Company)

13Marubeni Corp 50%

Abdul Chaffar Jamjoom 50%

7November 1982TradingMarubeni Saudi Arabia Co., Ltd.

Petrostar Ltd 50%

Chiyoda Corp 49%

7June 1975Plant EPC Contractor

Chiyoda PetrostarLtd.

20Denso Int’l Asia Ple. Ltd (Singapore) 50%

Abdul Latif Jameel Co. 50%

7.5March 2001Assembling and Sales of Car A/C

DENSO ABDULLATIF Jameel Co. Ltd

123ABBAR 75

MHI 20%

Chatani Corp 5%

20April 1986Assembling and Sales of Small A/C

Saudi Factory for Electrical Appliances Co. Ltd. (SFIECT)

Zamil Industrial Investment Co. (ZIIC) 90%

Mitsui & Co. Ltd 10%

251997Pre-Engineering Buildings (PEB)

Zamil Steel Building Vietnam Co. Ltd

EmployeesInvestorsInvestment

(SR mil)

EstablishBusiness Line

Company Name

Thank You