SALALAH — Octal Petrochemicals Company is one of the mega projects for the production of polyethylene sheets and resin in the world and its contribution to the GDP stands at 1.1 per cent. Moreover, the production of the company is 10 per cent of the Sultanate’s non-oil exports. Speaking to Oman News Agency (ONA), George Freiji, development manager, said the project, a joint foreign, Gulf and Omani venture, produces 30,000 tonnes of PET resin used in the manufacture of plastic packages.
The company, located in Salalah Free Zone, is the biggest producer for polyester in the Middle East. He said the company, which has invested $600 million in setting up the plant in the first and second expansions, has now plans to invest $1 billion by 2014. The expansions witnessed by the project will raise the production to 950,000 tonnes of PET sheets and resin by May, making Octal the biggest PET sheet producer in the world from single site. After the expansion, the plant will be the fourth at the world level in terms of PET sheet products and is currently the largest PET sheets and resin producer in the Middle East.
The official said that the company exports 97 per cent of its production to world markets, such as US and Europe as well as the MENA markets. Part of the production is also allocated to meet Sultanate’s needs of PET. The sale volume of the company products is at $600 million 
in 2011. “The new expansion will raise the company’s exports to $1.2 billion,” he added.
“Octal attaches great priority to employment, rehabilitation and training of Omanis. Out of the 348 employees in the company, 101 are Omanis, thus the Omanisation rate in the company is 29 per cent. The company has long-term plans to reach 50 per cent Omanisation rate in 2014 through employing more Omanis after completing the current expansion in the plan,” he said.
“Co-operation is maintained between the company and the Manpower Ministry through the College of Technology in Salalah.
A one-year training programme coupled with employment has been implemented. Many of those graduated by the program were employed by the company which also provides 17 training, development and rehabilitation courses for its employees.”
The company is one of the major clients of Salalah Port as it owns 80 per cent of the exported containers. The company exports 13,000 containers, imports 10,000 container for raw materials (container export and import ratio is 35:30 daily).
In response to a question on selecting Salalah for the project he said: “Besides its strategic location and promising to marine routes from all directions, thus ensuring easy access to US, European and Asian markets, Salalah has world-class infrastructure and facilities.”
“Moreover, the FTA between the Sultanate and US is one of the reasons that attracted the investors to set up their project to benefit from the advantages provided by this agreement namely the tax exemptions on 
the company exports to US market. The Sultanate has also good relations with EU countries therefore benefit from the low custom duties on its exports to Europe,” he said.
The company attaches great importance to its corporate social responsibility and preserving the environment.
It is worth mentioning that the major shareholders for Octal are Suhail Bahwan Holding Group, National Investment Fund, Muscat Overseas, Oman Investment Company, Meltin Trading and Contracting LLC, Oman and Emirates investment Holding and Dhofar Investment and Real Estate Services, in addition to individual and corporate investors from Saudi Arabia, Kuwait and the US. The company is supported by BankMuscat, National Bank of Oman, Bank Dhofar, Bank Sohar, Ahlibank, Abu Dhabi National Bank and HSBC. — ONA
