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Salalah to ramp up PET production capacity in two stages

22
Apr '08
Octal Holding and Co SAOC will add 500,000 metric tons per annum (tpa) of production capacity in PET resins by May 2010, making it one of the world's largest polyester producers with 800,000 metric tons of annual capacity.

Octal Chairman Saad Suhail Bahwan said the company's second-phase expansion will make it the largest polyester manufacturer in the Middle East and one of the biggest outside of China on one site.

Octal's integrated PET resin and APET sheet facility in the southeast city of Salalah will ramp up the new production capacity in two stages: 250,000 tpa by March 2010 and the remaining 250,000 tpa by May of that year. The company is targeting the soft drink and bottled water markets in Europe, the U.S. and Middle East through its move into PET.

“Between 2009 and 2012, more than 20 million metric tons of plastic raw materials capacity will come on-stream in the Gulf,” said Mr. Saad. “Octal is harnessing the region's strategic advantage and Salalah's unique location to deliver major growth in PET resin production for export as well as significant cost savings through our integrated, one-site operational model.

“Octal is fulfilling its expansion strategy to become a homegrown global petrochemicals leader. Phase one saw our entry into APET sheet for global export. Phase two will be a major step forward in PET resin production, and phase three will complete the integration of our state-of-the-art facility, realizing unprecedented cost and quality advantages.”


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