MANILA, Philippines - More investments are expected to be poured into the petrochemical industry amid rosier economic outlook.
As the economy grows, plastic consumption grows with it. More items are being sold to consumers so you need plastic packaging and containers. If you are growing five percent, you should expect the sector to grow by 10 percent,said Mario Sereno, executive director of the Association of Petrochemical Manufacturers of the Philippines.
Sereno said major investments in midstream and upstream activities already reached $935 million.
This include the $300 million of Petron Corp. which is branching out into petrochemicals from petroleum refinery and the $350-million upstream project being undertaken by the J.G. Summit Petrochemicals.
Petrochemicals refer to petroleum or natural gas by-products used for the production of various products like plastics, solvents, synthetic fibers and other essential commodities.
As a basic industry, it provides needed raw materials for virtually all other industries, he said.
Sereno said significant investments also involve the rehabilitation of two new large midstream plants in Bataan that shut down in early 2000 because of unfavorable business condition.
One (NPC Alliance Corp. formerly Bataan Polyethylene Corp.) has been re-commissioned in 2008 with one line operating. The other firm is expected to be operational by year-end 2010,he bared.
Moreover, Sereno said some plastic processing firms are implementing modernization.
While we have large plastic processors, we also have very many small-scale (processors) which can already modernize,he noted.
Sereno further said the local midstream petrochemical industry has the potential to deploy further investments of P50 billion to P75 billion in additional backward and forward integration projects.