Face To Face: Going Global
Abdullah Salah Al-Nojaidi reveals the corporate strategy behind GPMC
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Abdullah Salah Al-Nojaidi, vice chairman of Global Petrochemical Marketing Company reveals the corporate strategy behind GPMC
Why was GPMC created?
This company has long been a dream in the minds of many of the senior petrochemical people in the GCC, especially in marketing and sales. Even though there were many individual petrochemical marketing and sales companies that are part of or belong to the petrochemical producers, there was no single company devoted to marketing the growing volume of petrochemical products in GCC countries, which are starting to capture a substantial share of world production and export volumes. It has been reported that 50% of planned new petrochemical capacity will be located in the Gulf area. A number of senior retired petrochemical executives saw the need for setting up such company.
What are the main challenges facing the company?
Even though all the 14 shareholders have impressive track records and experience in the industry, the company is still new and has not yet established a track record. This makes newer and younger management in some of the regional companies reluctant to give substantial volume of work to GPMC. We believe that the main challenges facing GPMC are sourcing products from different GCC petrochemical producers and finding the funds to finance the working capital of such an operation. I am confident that this will ease with time.
What are your main achievements?
GPMC was established one year ago and we have gained acceptance in a number of petrochemical companies, even ones that have their own marketing and sales organisation. GPMC was able to source a number of products from established petrochemical producers in Saudi Arabia, Kuwait and Qatar. Our first shipment was despatched to North Africa where GPMC has already set up a wholly-owned affiliate in Casablanca, Morocco.
GPMC plans to move plastics and fertiliser products to North and West Africa, South America and the Middle East. GPMC is also promoting investment projects in petrochemicals and participating in these projects.
Also, as part of its charter, GPMC is looking into petrochemicals logistics and advisory services.
How can GPMC help companies with logistics?
One of the purposes of setting up GPMC is to provide logistic services through strategic alliances with a number of well recognised international logistics companies. We also provide advisory and consultation in logistics, since a number of the company’s shareholders have managed a number of logistics organisations where they acquired excellent experience in the domain of logistics, transportation and warehousing, and contract termination.
Why have you chosen Bahrain as your headquarters?
GPMC has chosen Bahrain as it headquarters for a number of reasons. The first one is the ease of setting up companies and Bahrain is a suitable hub for all shareholders, producers and customers of GPMC. Bahrain is an important financial centre in the Gulf and has expertise and a capable workforce.
How’s GPMC dealing with the downturn?
In a downturn, companies look for the support of their customers and we believe that GPMC has come on the scene at the right time; we see that from the positive response that GPMC is receiving from petrochemical producers. GPMC compliments the existing setups of GCC petrochemical producers and it does not compete or conflict with their existing marketing and sales organisations.