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 state-of-the-art PET Complex in Salalah has been successfully achieved within budget and on time.
Following the ramp-up period, full running is expected by August which fortifies the company’s ability to serve its local and international market commitments. Phase two capacity takes total system output to 920,000 tons per annum of PET bottle grade resin.
The company’s annual exports reached RO 215 million ($ 559 million) in 2012 and the completion of the second phase of expansion will put OCTAL well on the way to achieving RO 511 million ($ 1.3 billion) in annual sales by 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 10 per cent of Oman’s non-oil exports, which equates to and about 2 per cent of Oman’s GDP.
“OCTAL is now building its brand on a truly global scale,” said Chairman Shaikh 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 explained 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 to PET, OCTAL has emerged as the only truly global supplier as a result of its capacity and supply chain capabilities. As such, the uniqueness of OCTAL’s technology is translating to higher volumes, margins and market applications by large multinational brands.
The unprecedented environmental advantages of DPET has 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.
“Environmental responsibility is at the core of our business practices. By fostering a culture of innovation to advance sustainability within our company we are reducing our carbon footprint and improving the environmental profile of our products, “ said Shaikh Bahwan.
“This has created a new paradigm for the packaging industry and has set global industry benchmarks in energy and natural resource efficiency. This gives our customers a product they need at a reasonable price which creates more value for our investors.”
As one of the largest employers in Salalah with a target Omanisation rate of 50 per cent by 2015, OCTAL has a growing workforce of more than 400 professionals and has already generated more than 100 promising career opportunities for talented Omanis with an additional 55 vacancies as phase two of the expansion plan reaches fruition.
Shaikh Saad Bahwan went on to say, “Our future relies on our people who can only deliver with the support of our supply partners, investors, lenders and customers. People can take pride in what we do and how we do it. This, we believe, is the driving force of our success.”
OCTAL has dramatically influenced the PET industry, growing from a $ 500 million dollar company to a $ 1.5 billion company in just 6 years, ranking in the world’s top ten PET resin producers and being the largest PET sheet producer in the world.
The next two years hold enormous promise for OCTAL which is now uniquely positioned to become the largest PET packaging company in the Middle East delivering the benefits of technology and innovation.
The company is already making inroads into Saudi Arabia, UAE and Kuwait in the GCC as well as Iraq, Turkey, Egypt and other Middle Eastern countries.