The CEO of the National Industrialization Company, Mutlaq Al-Morished, said in an interview with Al-Arabiya that the company’s long-term shipping contracts mitigated the impact of the price hike.
Al-Murshid added on the sidelines of the Gulf Petrochemicals and Chemicals Association Forum, that shipping prices rose 700% due to the “Covid-19” pandemic.
Al-Morished expected a gradual decline in freight rates, starting in the middle of next year.
The CEO stated that container production plants in China had stopped during the pandemic, which led to an increase in the container rental price from $800-1,200 to $7,500-8,500.
Al-Morished explained that the company’s carbon footprint is equivalent to 0.7% of the emissions produced in Saudi Arabia, and it is implementing programs to reduce it by about 30%.
He pointed out that the recent rise in polypropylene prices is unrealistic.
Al-Morished pointed out that “Tasnee” is one of the largest manufacturers of car batteries in the Middle East, as it produces two million car batteries, and the company’s plan relies on recycling spent batteries.