Octal Petrochemicals to invest US$ 20 mln in in Saudi Arabia to manufacture PET packaging

10-Feb-14

Octal Petrochemicals is setting up a project in Saudi Arabia to manufacture polyethylene terephthalate (PET) dairy cups and trays for dairy and poultry industries. Octal Petrochemicals will be investing $20 million for the downstream project, which will generate US$70 mln revenue per annum, once it goes on stream. "We are in an advanced stage to implement the project. We have already formed the company and have recently leased the land. Orders have been placed for equipment," said Geroge Freiji, manager (Corporate Development) of Octal. He also said that the Saudi venture is a 100% owned by the Omani company. "Our main base of operations is in Oman and Saudi will be a downstream project for a specific segment, which is dairy segment. The project is a downstream venture to our Salalah project," he said, adding: "The main raw material (PET sheets) for the Saudi project will be exported from Salalah." The project will be commissioned within six to eight months. Saudi Arabian company would manufacture 4,000 tons of PET dairy cups and trays in the initial phase.