Thread: Company Profile: OCTAL Petrochemicals.

About OCTAL Petrochemicals

OCTAL Petrochemicals, a subsidiary of OCTAL Holding and Co. SAOC (www.OCTAL.com), was established in 2006 and is rapidly becoming the world’s largest producer of PET Sheet and the Middle East’s largest producer of PET Resin. With state-of-the-art manufacturing based in the Salalah Free Zone, Oman, OCTAL has sales and customer support facilities in the United States, Europe and Asia.


Muscat, Oman, June 28, 2010

• Company estimates sales in 2010 to exceed $500 million and $1.1 billion in 2012
• Carbon footprint of OCTAL’s DPETTM sheet is the lowest in the industry

OCTAL Holding & Co. SAOC held its Annual General Meeting (AGM) at the Grand Hyatt Hotel, Muscat last week. The company’s shareholders were given an insight into the remarkable growth of OCTAL Petrochemicals, a wholly owned subsidiary of OCTAL Holding & Co. SAOC. Specifically, the meeting focused on presenting the expansion plans and resource mobilization for 2010 – 2011. Sales for the fiscal year ending March 31 were at $330 million and are planned to exceed $500 million in 2010, making it the leading manufacturer worldwide of PET sheet.

A year after Salalah-based OCTAL Petrochemicals, ramped up production at the world’s first integrated PET resin and PET sheet plant, the company has established itself as one of the world’s leading and most energy efficient manufacturers of clear rigid packaging materials.

OCTAL, which is the largest exporter from Oman to the US, currently produces 350,000 tons of PET products a year.

Already operating at 118% capacity, the PET complex is set to increase its output to 400,000 tons a year by October 2010. Further expansion is scheduled for completion in April 2012, increasing capacity to 927,000 tons a year.

OCTAL produces PET resin, which is used for packaging of soft drinks, water and edible oil. It also manufactures PET clear rigid sheet, used to make plastic packaging for food and consumer products and has recently made significant advancements in the dairy packaging market and the market for food packaging for single serve portions.

According to a recent study done by PIRA International, a global authority on environmentally friendly
packaging, OCTAL’s manufacturing facility is the most energy efficient in the world. OCTAL proprietary process manufactures PET sheet in a single step from basic chemicals, producing a significantly lower carbon footprint than its competitors. The study concludes that the carbon footprint of OCTAL’s DPET™ sheet is 20% lower than that of both APET and rPET (recycled PET) sheet.

OCTAL’s plant uses 65% less electricity to manufacture PET sheet and 35% less energy for resin. Only treated recycled municipality water is used in the process, of which 80% is recovered through reverse osmosis technology and sand filter systems.

OCTAL has also had a dramatic impact on the domestic market, by substituting 100% of resin imports into Oman, helping local businesses to cut costs and save working capital. The firm is now one of the largest employers in Salalah, with a workforce of 450, 30% of which are Omani. OCTAL is working closely with local
colleges to introduce more graduates to the manufacturing of polymers.

OCTAL’s customer base has expanded to over 35 countries in the world with monthly sales reaching $45 million. Annual exports now exceed $500 million. By 2012, the firm anticipates exports of more than $1.1 billion per annum.

Commenting on the AGM, OCTAL’s Chairman, Saad Suhail Bahwan said, “OCTAL’s growth validates our commitment to our shareholders and by manufacturing products with the environmental appeal large brands and retailers want, we are uniquely well placed. The company’s sound investment strategy and our investors’ continued support and confidence have been key elements in successfully exploring opportunities in this field. By 2012, OCTAL will be the 4th largest company in this industry. Our commitment to the environment and the selection of the latest technology in order to reduce our carbon footprint is an integral element of our strategy.”

Source: Petrochemicals PET Resin | Octal

Company Profile: OCTAL Petrochemicals - Update:
09 Sep 10
Uhde to build 550,000 tonne/year PET plant for Oman's Octal Petrochemicals

Muscat, Oman, January 19, 2009

Oman-based Octal Petrochemicals has started operations of its second PET plant in the southeast port city of Salalah, it was announced today. The new facility has a capacity of 300,000 metric tons per annum, making it the largest PET resin plant of its type in the Middle East, and the largest clear rigid PET sheet plant in the world.

Food and consumer packaging markets in the US, Europe and China are Octal’s prime targets in 2009. The first shipments of PET resin to Europe have been shipped this month, and Octal expects total per annum sales to reach US$400 million by the end of this year.

Octal Chairman Sheikh Saad Suhail Bahwan said: “The new plant marks the company’s emergence as a global player in PET resin and clear rigid packaging. Our investment delivers dramatically enhanced scale, breakthrough technology, and crucial cost and quality advantages at a time when customers need them most.”

In just over two years, Octal has become the largest exporter from the port of Salalah and a growing local employer. Octal uses world-first technology to produce clear rigid PET sheet directly from melted PET resin, delivering significant energy savings and enhancements to the quality and clarity of the final product.

Nicholas Barakat, Octal Managing Director, said: “Our patented DPET™ technology uses a single-phase reactor to integrate PET resin and sheet manufacture. The technology bypasses the expensive PET drying and melting process of conventional clear rigid sheet manufacture, producing PET sheet with superior optical and mechanical properties and using 65 per cent less energy.”

“The new technology involves enhanced gauge control, creating additional cost savings to the customer by achieving higher yields. Our production processes also meet stringent environmental standards; we only use recycled municipal wastewater and PET is 100 per cent recyclable.”

Octal employs 250 staff, mostly in Salalah, and plans to hire another 100 this year. The first batch of graduates from Salalah Training College will begin work experience training at Octal in February.

The college introduced a dedicated polymers training course with Octal in October last year and 43 students are currently on the course, the first of its type in Oman. Around 30 per cent of Octal’s employees are Omani nationals.

Barakat said: “As a large investor in the Oman economy, we are committed to offering employment opportunities for the best Omani talent. We have high expectations of our collaboration with Salalah Technology College and look forward to receiving our first graduates next month.”

Octal’s integrated PET resin and clear rigid sheet production plant was built at an initial cost of US$350 million and has 150,000 tons per annum of PET resin capacity. It complements an existing PET sheet plant opened in Salalah Free Zone in late 2006, which capacity was increased to 180,000 tons per annum.

A second phase of expansion will be completed in early 2011, increasing capacity by another 500,000 metric tons of PET resin. At this stage, Octal will be the largest PET resin company on one site outside China.

Barakat said: “Phase one is nearing completion and we remain on track with phase two. Despite the global economic challenges, regional investor interest remains strong and the capital is in place to deliver on our stated growth plans.”

Worldwide sales of clear rigid PET sheet packaging and PET resins were more than US$2.5 billion and US $15 billion respectively in 2006. The segment is experiencing annual growth of 7-10 per cent in response to retail demand for clear food and consumer goods packaging at the point of sale and the expansion of supermarket chains in developing countries.

“We are seeing a backlog of orders in the US and international markets. Our strategy is to focus on the large volume packaging producers who value maximum gloss and clarity in plastic consumer packaging and enhanced durability.”

Octal has placed an initial raw materials order worth US$7 million with Saudi Basic Industries Corporation for PTA, a key chemical used in PET manufacture. Octal’s annual demand for PTA (purified terephthalic acid) is set to exceed US$175 million when the new plant ramps up to full capacity in March 2009.

Other raw materials and equipment orders placed in the region include a contract for mono-ethylene glycol (MEG) worth US$60 million with MEG Global of Kuwait, and steel contracts with a combined value of US$30 million with Mammut Industries of the UAE and Kuwait’s Kirby International.

Source: Petrochemicals PET Resin | Octal