based Octal Petrochemicals has started operations of its second PET plant in the southeast port city of Salalah, it said in a press release. The new facility has a capacity of 300,000 metric tons annually, making it the largest PET resin plant of its type in the Middle East and the largest clear rigid PET sheet plant in the world. Food and consumer packaging markets in the US, Europe and China are Octal's prime targets in 2009 and the company expects $400 million in orders by the end of this year and already has orders with the Saudi Basic Industries Corporation (SABIC) worth $7 million. When the plant moves to full capacity by March 2009 its annual demand for PTA (purified terephthalic acid) is set to exceed $175million, according to the press release. Octal's Saudi Arabian co-founder Prince Faisal Al-Sudairi said the opening of the new plant marks “the company's emergence as a global player.” Octal has placed an initial raw materials order worth US$7 million with Saudi Basic Industries Corporation for PTA, a key chemical used in PET manufacture. Octal's annual demand for PTA (purified terephthalic acid) is set to exceed US$175 million when the new plant ramps up to full capacity in March 2009. Prince Faisal Al-Sudairi said, “Saudi companies are playing a major role in the expansion of Octal, and we're excited about the level of trade we've already established between the Kingdom and the Sultanate of Oman. We have strategically sourced a large amount of raw materials and packaging systems from Saudi Arabia, and we intend to strengthen relationships with Saudi and Gulf suppliers in 2009.” A second phase of expansion will be completed in early 2011, increasing capacity in PET resin by another 500,000 metric tons. At this stage, Octal will be the largest PET resin company on one site outside China. Worldwide sales of clear rigid PET sheet packaging and PET resins exceeded $2.5 billion and US$15 billion respectively in 2006. The segment is experiencing annual growth of between 7-10 per cent in response to retail demand for clear food and consumer goods packaging at the point of sale and the expansion of supermarket chains in developing countries.
