As Chairperson & Managing Director and on behalf of Members of the Board of Directors, Deputy Managing Directors and Employees of the Company, I am pleased to present to you PIC’s Thirtieth Annual Report for the fiscal year 2009-2010, ending on 31st March, 2010.

General Performance 

- After overcoming the circumstances of the global economic crisis during 2008 and its impact that extended to the beginning of the past year, PIC was able to record net profits of KD 82 million. This is achieved by the efforts of PIC’s management and employees, as well as Joint Venture companies, whose efforts led to these good results.
- PIC Long Term Strategy up to 2030 was endorsed, after it was reviewed and linked to KPC’s Strategic Direction for Petrochemicals.
- PIC celebrated the inauguration of its Mega Projects in Kuwait (Olefins-II, Aromatics and Styrene), with the honorable participation of His Highness the Amir, His Highness the Crown Prince.
- Our Joint Venture companies Equate, ME Global and Gulf Petrochemical Industries Company (GPIC) continue to give excellent financial results this year.
- PIC continued to implement several cost-cutting initiatives, including the Six-Sigma program which has been launched in most of the company’s activities. This is considered as one of our best initiatives and introduced for the first in Kuwait. We look to this program not only for cost-cutting through implementing different projects within the company, but also in terms of its achievement in training the workforce on usage of modern management systems to tackle shortcomings and implement Continuous improvements.
- Risk analysis was conducted for all of the company’s activities under the directives of KPC, and plans were drawn to tackle major risks according to risk management methodology approved for KPC and its subsidiaries.

Corporate Social Responsibility

- The company continues its commitment to operate its plants safely and responsibly, as well as to protect the environment in the interest of all our employees, our clients and the communities in the vicinity of the company. In this respect, the following was achieved:
- Achieved OHSAS-18001 certification for meeting international safety and occupational health standards. The certification includes all of PIC’s facilities, making it the first company to attain this certificate in Kuwait.
- Won the Arab Union for Fertilizer’s Award for Health, Safety and Environment.
- Achieved 11.2 million man-hours without lost time accident.

Organization Structure

 We have commenced a consultancy study for developing detailed organization and Process design for Strategic Business units in order to create a suitable integration with other implemented work processes operating in the Organisation.

Human Resource Management

 Developing our human resources and providing them with the necessary skills to carry out their jobs in a proper manner is one of our greatest priorities. Our Leadership Skills’ Development Program has played an effective role in training our employees to take over necessary leadership positions and contribute to the growth of the petrochemical industry in Kuwait. We must note here that PIC is closely following-up on the ‘Kuwaitization’ plan, with the number of Kuwaiti employees in the company reached 77.3%.

Company Strategy

- PIC’s strategy has been reviewed and approved by KPC in light of the strategic direction for petrochemical activity in KPC’s 2030 strategy. - With regard to the petrochemical refinery project in China, the following has been achieved:
• Donghai Island’s Zhanjiang City was selected as the new project location, and two memorandums of understanding where signed in this regard. 
• A feasibility study was prepared and reviewed based on the new locations, and was presented to related authorities. An environmental study is being prepared, to be presented to the Ministry of Environmental Protection.
• The approval to beginning preliminary engineering work is expected to be obtained in the third quarter of the fiscal year 2010-2011.

- In line with PIC’s strategy for growth in petrochemicals, the first part of an economic Prefeasibility study was completed for Olefins-III Project in Kuwait. The remaining details of the pre-feasibility study will be completed in this coming year, following which a detailed Feasibility Study will be launched.
- In order to optimize use of hydrocarbons resources in Kuwait, PIC has continued to study integration opportunities between refinery and petrochemical operations jointly with Kuwait National Petroleum Company (KNPC), on a number of projects that were previously agreed for study and implementation.

Future Vision

 In light of stability in the global petrochemical markets and the growing demand for petrochemicals, PIC seeks to search for attractive investment opportunities in target markets such as Asia, in order to achieve its objective for growth in petrochemicals. This is aligned with KPC’s strategic directions and PIC’s Long Term Strategy. Investment in human resources remains a goal that we always strive to achieve. This is based on our belief in the importance of developing the human element in an encouraging environment, thereby increasing their productivity, which in turn supports the implementation of PIC’s strategy.

At the end, on behalf of my Board Members, Management, all employees and myself, I express my gratitude.

His Highness the Amir of Kuwait,

His Highness the Crown Prince

And

His Highness the Prime Minister,