Omanas OCTAL increases capital to reach $1.1b in exports by 2011
(MENAFN Press) Emerging global packaging leader OCTAL is on course to become a US1 billion company by 2011, with export volumes to global markets expected to triple over the next two years.
OCTAL Chairman Sheikh Saad Suhail Bahwan said total sales of polyethylene terephthalate (PET) were US25 million in June and would reach US100 million per month by the middle of 2011.
OCTAL ships more than 1,200 containers per month from Oman and now accounts for 85 per cent of import-export traffic through the port of Salalah.
Sheikh Saad said: Despite the downturn, our business is growing on the strength of scale, reliability of supply and product quality offered by our advanced manufacturing operation in Salalah Free Zone. In two years we will be a US1 billion company. We are winning new customers while the competition cuts back or closes down and making steady progress in converting the market to PET.
OCTAL, which opened the worlds first integrated PET resin and sheet complex in January, exports to more than 60 customers in 33 markets. It has also substituted 90 per cent of PET resin imports into Oman, valued at nearly US42 million a year.
June was OCTALs busiest month to date, with 22,000 metric tons (m/t) of PET resin and sheet sold to local, regional and international customers.
Eng. Awadh bin Salim Al Shanfari, CEO of Salalah Free Zone, said: Salalah Free Zones competitive advantages and its prime location in the West Central Asia region provide a platform for a variety of business and downstream industries. OCTALs dramatic growth shows what can be achieved and underlines the fact that Salalah Free Zone is the ideal location from which to expand.
OCTAL exports 66 per cent of its products to Europe, 30 per cent to North America, and the remainder to Middle East and Asian markets.
OCTAL produces PET resin for soft drink, water and edible oil packaging, and PET sheet, the worlds fastest growing material in clear rigid plastics, which is used for food, dairy and consumer product packaging.
Built at an initial cost of US350 million, OCTALs integrated PET complex has a production capacity of 330,000 metric tons (m/t). Total PET capacity will increase to 830,000 m/t following the completion of a second phase of expansion in 2011. At that point, OCTAL will be the worlds largest PET producer on one site.
OCTALs Sheikh Saad said: OCTAL is a growing business and is reinvesting resources in the development of local talent, creating new jobs and training for young Omanis. We are proud that a third of our workforce of more than 350 employees is made up of Omani nationals.
He said: In 2008, total exports for the year were US48 million. After five months of operations at our new complex in Salalah Free Zone, monthly sales are US25 million. By 2011, as one of the largest producers worldwide of PET packaging materials, OCTAL will have annual exports of US1 billion.
OCTAL has already closed on the equity and mezzanine financing it needs to complete phase two of its expansion.
OCTAL has raised US100 million in equity from its existing Oman- and GCC-based investors and aims to secure US130 million in additional debt from local and regional banks, maintaining a high ratio of equity to debt (55 per cent versus 45 per cent).
Sheikh Saad said: Our annual running rate of exports now stands at around US300 million and will increase to 400 million by December. Despite being a new company, the financial community recognises our impressive track record and ability to become a world leader in PET based out of Oman.
Since its official launch in 2006, OCTAL has secured US194 million in long-term loans and US68 million in working capital loans from Bank Muscat and Bank Dhofar.
OCTAL has also arranged US32 million in mezzanine financing from Bank Muscat, an investor in OCTALs parent company. The Middle East and North Africa Fund of HSBC acquired a minor stake in OCTAL Holding in 2008.
Commenting on OCTALs phase two expansion, Bill Urquhart, Senior Vice President of Townsend Solutions, the US-based plastics consultancy and market research firm, said: OCTALs world-scale site, technical advantages, and its ready access to feedstock chemicals save costs and offer unique integration. This is the new model for global competitiveness in PET. OCTALs phased development and product seeding are aiding sales growth and delivering a superior quality product.
OCTAL Petrochemicals is a wholly-owned subsidiary of OCTAL Holding & Company SAOC, a joint stock company listed on the Muscat Securities Exchange.
OCTALs investors include the National Investment Fund Company (NIFCO), Muscat Overseas, Oman Investment Company, Malatan Trading and Contracting, Oman and Emirates Investment Holding, Suhail Bahwan Group, Dhofar International Development and Investment Holding Company (DIDIC), Bank Muscat, and the MENA Infrastructure Fund (HSBC).
OCTAL is rapidly becoming the worlds largest producer of PET sheet and the Middle Easts largest producer of PET resins. 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.
MENA News Headlines
|Mar 8 2014||Security Developments In Iraq ,Qatar News Agency|
|(MENAFN - Qatar News Agency) Two soldiers were wounded when a roadside two bombs on a military patrol in Kirkuk. Two bombs exploded successively targeting an army patrol, near the village of Khirbet ...|
|Mar 8 2014||Riyadh Lists Brotherhood As Terrorist ,Arab Times|
|(MENAFN - Arab Times) Saudi Arabia listed the Muslim Brotherhood and two Syrian jihadist groups as terrorist organisations Friday, and ordered citizens fighting abroad to return home within 15 days ...|
|Mar 8 2014||AMG Wins 'Best Technician' Title In Ford Mideast SEWC ,Arab Times|
|(MENAFN - Arab Times) Arabian Motors Group (AMG), the Ford and Lincoln importer-dealer in Kuwait, emerged a winner as it competed in Ford Middle East's Service Excellence World Cup, securing the ...|
|Mar 8 2014||Kuwait Food Co Records Net Profit Of KD 50.5 Mn In 2013 ,Arab Times|
|(MENAFN - Arab Times) The Kuwait Stock Exchange announces that the Board of Directors of Kuwait Food Co met on Wednesday 5/3/2014, and approved the annual financial statements of the company for the ...|
|Mar 8 2014||Kuwait- Drug peddlers held ,Arab Times|
|(MENAFN - Arab Times) Two Arab expatriates were arrested for drug peddling and possessing 5,000 narcotic pills, reports Al-Seyassah daily.
According to security sources, when the Directorate ...|
|Mar 8 2014||Kuwait- Somali, Pakistani Workers Held Stealing Pipes ,Arab Times|
|(MENAFN - Arab Times) Two laborers - one Pakistani and the other Somali, were arrested for stealing pipes from a construction site in Subbiya area
According to security sources, when the project ...|
|Mar 8 2014||Kuwait- Six Inmates Acquitted Of Consuming, Smuggling Narcotics ,Arab Times|
|(MENAFN - Arab Times) The Court of Appeals presided over by Judge Najeeb Al-Mulla cancelled the verdict of the Court of First Instance, which sentenced six inmates of Central Prison to fiveyear ...|
|Mar 8 2014||Kuwait- Man acquitted ,Arab Times|
|(MENAFN - Arab Times) The Criminal Court presided over by Judge Nayef Al-Adwani acquitted an unidentified individual of allegedly humiliating a teacher and threatening to murder her.
|Mar 8 2014||Kuwait- Four acquitted ,Arab Times|
|(MENAFN - Arab Times) The Court of Appeals presided over by Judge Anwar Al-Enezi upheld the verdict issued by the Court of First Instance Court, acquitted four individuals of allegedly stealing ...|
|Mar 8 2014||Kuwait- Four Acquitted In Theft Of Medicines From Hospital ,Arab Times|
|(MENAFN - Arab Times) The Misdemeanor Court of Appeals presided over by Judge Emad Al-Mindil revoked the verdict of the Court of First Instance, which sentenced an unidentified individual to ...|
|Mar 8 2014||Kuwait- Trio Robs Bangladeshi Grocer At Knifepoint ,Arab Times|
|(MENAFN - Arab Times) Three unknown individuals stole KD 30 cash and 35 mobile recharge cards from a grocery shop in Nugra area after threatening to attack the Bangladeshi grocer with a knife. ...|
|Mar 8 2014||Kuwait Calls For More Financial Support For UNHRC ,Arab Times|
|(MENAFN - Arab Times) More financial support should be given to the High Commissioner of United Nations Human Rights Council (UNHRC) to help its endeavors in protecting and promoting of human rights, ...|
|Mar 8 2014||'Kuwaiti Women Fought Hard To Gain Their Constitutional Rights' ,Arab Times|
|(MENAFN - Arab Times) March 8th of each year marks International Women's Day (IWD) where organizations, governments, charities, educational institutions, women's groups, corporations and the media ...|
|Mar 8 2014||'Phones Bad For Health' ,Arab Times|
|(MENAFN - Arab Times) Participants in the meeting of the third Dialogue Council of His Highness Sheikh Salem Al- Ali Al-Sabah Informatics Award about (Health and safety of the body with the use of ...|
|Mar 8 2014||Kuwait- Bid To Tackle Human Trafficking ,Arab Times|
|(MENAFN - Arab Times) The International Organization for Migration (IOM) will soon present the national anti-human trafficking transmission system project to the Ministry of Interior, says Chief of ...|
|Mar 7 2014||Cement demand to grow on infrastructure projects in Oman ,MENAFN|
|(MENAFN) Infrastructure projects in Oman is expected to reflect a high growth on the cement sector, according to Oman Observer.
Omani government plans to launch developing transport and social ...|
|Mar 7 2014||Aviation sector to register highest growth in ME ,MENAFN|
|(MENAFN) Traffic in air passenger and air cargo is expected to outperform in the Middle East by 2032 compared to all other regions, according to Oman Observer.
Air passenger traffic in the Middle ...|
|Mar 7 2014||UAE's Danube revenue up 17 percent in H2 ,MENAFN|
|(MENAFN) Sales revenue of Danube Group, a leading construction and home interior company in the UAE, was estimated at USD 544 million in 2013, according to Khaleej Times.
Revenue rose by up to 17 ...|
|Mar 7 2014||UAE, Serbia sign USD1 b loan deal ,MENAFN|
|(MENAFN) UAE's Department of Finance has signed a USD1 billion loan deal with Serbian Finance Minister in a visit to Abu Dhabi, according to Khaleej Times.
The loan deal aims to strengthen ...|
|Mar 6 2014||Cement demand in Oman to grow 6 percent annually ,MENAFN|
|(MENAFN) Cement demand in Sultanate of Oman is expected to grow in the upcoming few years, Times of Oman reported.
Huge infrastructure and tourism projects in the Gulf nation will push cement ...|