Omani petrochemicals major Octal has announced a 16 per cent increase in its sales for 2017.
Reporting its 10th consecutive year of growth, plastics and PET leader Octal confirmed production is already under way on the contracted orders, valued at USD 260 million.
The USD 650 million company has four purpose-built plants in Oman, Saudi Arabia, and the United States, and is gearing up for its third phase of growth into downstream arenas and value realization.
Octal (profile) is also working towards an IPO to support its global expansion.
Octal’s products currently comprise 7.3 per cent of Oman’s non-oil exports.
Octal CEO Nicholas Barakat (biography) said, “We are working closely with SMEs and other manufacturers to develop the downstream PET industry and formulate a strategic outline and vision on how we can contribute to boosting Oman’s vision of a diversified economy. Developing new technologies with applications in new geographies have been the cornerstone of our success and a clear indication of the immense possibilities and potential of the manufacturing sector and its line of new products in the Sultanate.”
The increasing demand for OCTAL’s fully recyclable, sustainably produced packaging solutions, used by the food, beverage and pharmaceutical, as well as consumer goods businesses, continues to be driven by the introduction of innovative new products.
Octal’s Phase 1 focused on achieving leadership position in established markets with the introduction of its proprietary direct-to-sheet polyester (DPET) sheet with its superior mechanical performance and environmental benefits. Phase 2 involved disrupting existing markets through material science, conversion and new technologies. With Phase 3, the company is looking to expand the universe of DPET applications through the deployment of new processes and downstream growth.
Octal’s recently launched, first of its kind, new process technologies for DPET pots for yogurt and dairy products and its modified PET disposable cups, lids, cutlery and food service applications are attracting attention this year for their combination of performance and low energy consumption.
The company’s sales momentum has also benefited from its successful expansion into high-volume markets in the United States. During 2017, OCTAL will benefit from the introduction of three new products boosting unique properties to its production lines.
William J. Barenberg, Chief Operating Officer & Executive Vice President at OCTAL highlighted how strategic investment has been key in the company’s achievements.
“Oman’s non-oil sectors are expected to continue growing in 2017, gaining momentum in their ability to compete on a global scale. We are seeing a number of key initiatives being implemented like greater access to finance, the continued support and eventual completion of major infrastructural projects, as well as the rise of new logistical hubs that should have a significant and positive impact on businesses’ growth in the long-term. These are positive signs for Octal and Oman at large, making it highly likely that 2017 will be another year of growth and opportunity,” he said.
Founded with an investment of USD 600 million, Octal operates on strong eco principles, prioritizing the stewardship of natural resources. In 2015, it had an export value of USD 569 million, selling 98 per cent of its high-quality, environmentally friendly PET resin and sheet product overseas.
With a total annual capacity of almost one million metric tonnes, Octal is the largest global manufacturer of PET Sheet and Resin on a single site, and the only company in the world with a fully integrated food packaging system from raw material to finished product.