Octal Petrochemicals will add 500,000 tons of PET capacity in second-phase expansion by May 2010. With this, production capacity will spike to 800,000 tpa, making the company the largest polyester manufacturer in the Middle East and one of the biggest outside of China on one site. Total investment on the site is set to rise to as much as $1 bln upon completion. 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 metric tons by March 2010 and the remaining 250,000 by May 2010. The company is targeting the soft drink and bottled water markets in Europe, the US and Middle East through its move into PET.
Preliminary funding for phase two is already in place. US$18 mln has been allocated for long-lead items and engineering work. Fluor Corporation has been retained as technical advisor for the expansion and is preparing bid packages for the construction. BankMuscat will continue to serve as financial advisor.
Octal's phase-one facility is nearing completion and will produce 150,000 tpa of PET by the end of 2008. By that time, the plant's total combined production capacity of PET and APET sheet will have reached 330,000 tpa.
Based at Salalah Free Zone, Octal Petrochemicals' integrated PET (polyethylene terephthalate) and APET (amorphous polyethylene terephthalate) production plant is being built at an initial cost of US$300 mln.