OCTAL, one of the largest PET producers in the world and a global leader in the packaging industry, has announced that phase two of the expansion plan of its PET complex in Salalah has been successfully achieved within budget and on time.
According to a press release, the new facility will run at its full capacity by August and it will take the total system output of PET bottle grade resin to 920,000 tonnes per annum.
The company's annual exports reached RO215mn in 2012 and the completion of the second phase of expansion will put OCTAL well on the way to achieving RO511mn in annual sales by the year ending March 31, 2013.
This will be achieved by increasing capacity and converting new packaging applications to DPET sheet including the packaging of dates, yoghurt, meat and cheese. OCTAL now accounts for ten per cent of Oman's non-oil exports, which equates to and about two per cent of Oman's GDP.
"OCTAL is now building its brand on a truly global scale," said chairman Sheikh Saad Suhail Bahwan. "Our aim is to move into market leadership positions with multi-national giants such as Coca-Cola, Nestlé, Colgate and P&G.
"By growing our very profitable DPET sheet business and leveraging the advantages of the PET resin business, we have established a strong and stable base from which to drive targeted expansion into new markets such as South America, China and Australia."
With 85 per cent of all increases in sales in 2012 coming from new products, OCTAL's innovation makes it well placed to drive broader adoption of PET.
Focusing on new resins with enhanced performance will allow the company to expand its market reach.
"Our investors benefit from our technology-driven economic engine which is sustainable over the long term and geared towards attractive high-growth markets where we are expanding our downstream packaging capability," he added.
The chairman said that OCTAL is committed to supporting the wholesale conversion of large food and consumer product companies' packaging requirements to PET.
At a time when the FMCG companies are taking the decision to replace their PVC, polystyrene and other less performing polymers with PET, OCTAL has emerged as the only truly global supplier as a result of its capacity and supply chain capabilities.
The unprecedented environmental advantages of DPET have also encouraged local companies such as Dhofar Cattle Feed, National Mineral Water Company, Lulu Hypermarkets and Areej Vegetable Oils & Derivatives to use OCTAL's proprietary packaging material which is creating a ripple effect in contributing to reducing global carbon footprint.
© Muscat Daily 2012
