SAUDI ARABIA: Octal to set up USD 20 million packaging unit

"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 (in Oman)," 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.

Freiji said the Saudi Arabian company would manufacture 4,000 tonnes of PET dairy cups and trays in the initial phase.

Octal Petrochemicals last year said that the value of the company's exports stands at USD 100 million per month or about 2 % of the gross domestic products of Oman and 15 % of the non-oil exports.

The company has achieved remarkable revenue growth - from USD 500 million to USD 1.5 billion over a six-year period only after being rated as one of the biggest four producers of PET resin and PET sheets.

The company provides environment friendly packaging solutions.

Source: Daily "Times of Oman", Muscat; 9 Feb 2014
(Syed Rashid Ali, Karachi, Pakistan)