IE GEMBA Application Essay - Question H: What do you believe are the greatest challenges facing the sector or industry you would like to specialize in at IE? What role do you hope to be able to play in this sector or industry in the medium term?

1. What do you believe are the
greatest challenges facing the
sector or industry you would like
to specialize in at IE?
What role do you hope to be
able to play in this sector or
industry in the medium term?

2. The Middle East petrochemical landscape
The key challenges for the industry
Pivotec, HyVent Technology & Gulf Interchem
What makes us unique?
Companies’ actions on industry’s challenges
Summary

3. The Middle East Petrochemical landscape
Historic development attributable to
unexploited, abundant natural gas reserves
Phenomenal growth through organic expansion
The sector in digits (2011):
Generates sales of 44.7 Bio USD
Accounts for 43% of non-oil exports
Saudi Arabia accounts for 67% of Middle East production
80% of production is exported outside Middle East
80,000 direct employment opportunities

4. The petrochemical market players

5. The key challenges for the industry
CREATE
ECONOMIC
VALUE
Innovation
Value Chain
Responsible
Supply Chain
PROTECT
NATURAL
RESOURCES
Resource efficiency
Communities
Waste
DEVELOP
PEOPLE
Employees Social commitment Ethics
Driving Growth
through Sustainability

6. Why these key challenges?
Capitalize on feedstock advantages
Develop a less cyclical product base, thus yielding more
stable returns over the long term
Capture the value-adding that is now exported
Newly distorted supply-demand balance due to
– increasing export supply > shale gas innovation (US)
– decreasing import demand > MeOH-to-olefins (Asia)
Rapid expansion of urban youth population
– create value-adding job opportunities
– leverage on multicultural diversity

7. The key challenges in action
Innovation
 Innovation focus on
 Value creation
 Cost optimization
 Safety & quality
 Acquire requisite
technology & know-how
for downstream
developments
 Increased budget
allocation to R&D in
strategically important
areas of competence
Value Chain
Driving Growth through Sustainability
CREATE
ECONOMIC
VALUE
PROTECT
NATURAL
RESOURCES
DEVELOP
PEOPLE
 Focus on product
lifecycle management
 Reduce non-renewable
energy & material inputs to
process
 Reduce environmental foot-
print of manufacturing &
distribution processes
 Develop solutions to enable
customers to reduce
footprint
 Develop solutions to reduce
society’s footprint
 Design product and process
solutions to close the
lifecycle through recovery
of material and energy
value.
Responsible Supply Chain
 Infrastructure upgrade
 Port side facilities
 Railway Land Bridge (KSA)
 Road network
 Challenge of piracy
 Address road safety
 Transport of hazardous
material

8. The key challenges in action
Resource efficiency
 Feedstock diversification
 Reduce carbon footprint
 Reduce water usage
 Reduce emissions
 Reduce energy usage
 Reduce material loss
Communities
Driving Growth through Sustainability
CREATE
ECONOMIC
VALUE
PROTECT
NATURAL
RESOURCES
DEVELOP
PEOPLE
 Responsible Care®
initiative endorsed
 Leverage on community
projects applied to
 Plastic related education
 Safety
 Water
 Health(care)
 Environment
Waste
 Reduce waste
generation
 Develop innovative
solutions to upcycle
waste
 Foster partnership &
collaboration with
specialized companies

9. The key challenges in action
Employees
 Attract & retain talent
 Improve employment of
local population
 Improve working &
living conditions
 Training & education
Social Commitment
Driving Growth through Sustainability
CREATE
ECONOMIC
VALUE
PROTECT
NATURAL
RESOURCES
DEVELOP
PEOPLE
 Downstream expansion
necessity to cope with
demographic pressures
 Development of labor-
intensive processing
centers
 Promote diversity
Ethics & compliance
 Install Code of Ethics
 Competition Law
 International Trade
Controls
 Insider Trading and Stock
Tipping
 Conflicts of Interest
 Environment, Health, Safe
ty and Security
 Intellectual Property
 Product Risk
Management

10. Growth through downstream innovations shall require
ability to access, acquire or develop technology
attrition and retention of skilled workers
mental shift in driving away from existing business models
investor-friendly business environment
Growth through downstream innovations shall yield
generation of valuable job opportunities
reduction in environmental footprint
long-term sustainable societal developments
capture the value-adding creation at origin
The key challenges summarized

11. Since 2011, Bernard van den Wouwer has established three
interlinked companies active in developing, processing,
upcycling and trading chemical waste streams generated
at petrochemical production facilities.
The core focus of the developments center around
low-value, highly complex (petro)chemical waste streams
convert low-value streams into valuable chemical products
potential for upcycle recycling through innovative technology
zero waste-out-of-waste
streams originating from Middle East production facilities
Pivotec, HyVent Technology & Gulf Interchem

12. Integration of the companies
HyVent Technology (Bahrain / The Netherlands)
 owner of patented technology for waste treatment (hydrothermal)
 owner of state-of-the-art laboratory in The Netherlands
 business model based on licensing agreements
Pivotec Arabia (Bahrain / Saudi Arabia)
 processing, production & treatment of organic or inorganic chemicals
 access to treatment technology through sourcing
 business model based on tolling fee agreements
Gulf Interchem (Bahrain)
 trading arm of the business set-up
 marketing of new chemical molecules on international market
 business model based on purchase-sales agreements
Roadtomarket
Note: Bernard van den Wouwer is the Managing Director of all companies

13. Pioneering & innovator
technology-driven knowledge base (chemistry, engineering)
patentable innovations
first-time producer of chemical molecules in Saudi Arabia
total solution provider
Create shareholder value for petrochemical producer
waste disposal cost saving
revenue generation from waste streams’ sale (pay-for-waste)
What makes us unique?

14. What makes us unique? (cont.)
Sustainability approach
environmental-friendly treatment of waste streams
climb the “Waste Hierarchy”-ladder from disposal to re-use /
recycle
first-of-its-kind: waste streams drive innovation
Social engagement
direct employment opportunities for local community
high-end jobs throughout the treatment plant

15. Companies’ action on industry’s challenges
CREATE
ECONOMIC
VALUE
Innovation
Value Chain
Responsible
Supply Chain
PROTECT
NATURAL
RESOURCES
Resource efficiency
Communities
Waste
DEVELOP
PEOPLE
Employees Social commitment Ethics
Driving Growth
through Sustainability

16. “The future will be green & sustainable,
or not at all”
Adapted from Jonathon Porritt

17. Sources
GPCA website (www.gpca.org.ae)
Sustainability Report Borouge 2012
Sustainability Report Sabic 2012
Annual Report Saudi Kayan 2012
Annual Report Tasnee 2010
The GCC in 2020: Downstream Expansion in the Middle East
Chemical Industry (KPMG Report – Dec 2011)
plant pictures: Borouge, Kemya, Tasnee, PetroRabigh, Saudi Kayan,
Sharq, Petrokemya, BASF, Ineos, Qapco, Jana, Equate
Addendum