Oman-based integrated energy group OQ said its petrochemical unit has signed nine key agreements worth $88 million for the establishment of industrial projects within the Ladayn Polymer Park in Sohar Industrial City. The move is aimed at fostering the growth and development of local businesses.
These agreements are part of OQ’s efforts to support economic diversification policies and attract investment, in line with the objectives of Oman Vision 2040. Additionally, they aim to boost investment in industries that meet the needs of local markets and exports.
Aiming to maximise the added value of petrochemical projects and local businesses, the agreements focus on promoting Omani goods and services or those provided by locally registered suppliers.
Such efforts are crucial for job creation and skill development, especially in the plastics industry, and they pave the way for new opportunities for small and medium enterprises (SMEs).
Strategically located in Sohar Industrial City, the Ladayn Polymer Park is a key project aimed at propelling Oman towards self-sufficiency in plastic products and carving out a niche for the country in the international plastics market.
This project is set to invigorate the local industrial sector by introducing new, added-value products, thereby fostering the growth of similar industries.
According to OQ, the agreements maximise added value for refineries and petrochemical industries projects through fostering the growth and development of local businesses; promoting Omani-made goods and services that are or provided by locally registered suppliers; creating job opportunities and development of human capital; skill development and innovation as well as advancing and localising plastic industry operations to minimise imports
This agreement is a testament to OQ's dedication to boosting in-country value (ICV), a central element of the group's investment strategy aimed at enriching local markets, supporting domestic products, and strengthening small and medium enterprises (SMEs).
OQ pointed out that integral to this strategy is the localisation of select goods, contributing an estimated $46 million annually to the ICV. Furthermore, these collective investments are poised to create around 290 direct job opportunities, along with an additional 600 indirect jobs, underscoring the significant economic impact of OQ's initiatives.
The agreements were signed by Hilal bin Ali Al Kharusi, Chief Executive Commercial & Downstream at OQ, alongside representatives of the following companies:
*A $35 million agreement with Mohammad Riaz Sons Plastic Company for advanced sustainable plastic food packaging components, inked by the company Managing Director, Zain Mohammad Riaz.
*An agreement to establish the Napco National project with an investment starting at about $15 million and increasing to $48 million, aimed at manufacturing packaging bags for petrochemical products, plastic compounds and packaging. It was signed by Issam Chaaya, Vice President for Chemicals & Petrochemicals.
*An agreement with MAK Germany GmBH to establish a project worth $11 million to produce specialised plastic compounds, signed by Mohammad Amiri, Executive Director.
*An agreement with Madayn Plastic Company SPC for USD 8 million, to produce shrink wrap tapes, packaging bags for petrochemical products, food packaging and frozen food bags. The agreement was signed by Mohammed Al Loughani, Chairman of Madayn Plastic Company SPC.
*A $6 million agreement with Jil Technology for innovative 3D manufacturing, signed by Ghada Al Yousef, Founder and CEO.
*An agreement with Jcoplastics for the establishment of a project to produce plastic waste containers, boxes and pallets, with an investment of about $6 million in the first phase, signed by Antonio Foresti, the company's CEO.
*An agreement with Gemini Corporation for plastic recycling and sustainability to manufacture plastic products with an investment of $3 million. The agreement was signed by Surendra Patawari, Chairman of the Board of Directors of the company.
*An agreement with the National Plastic Lumber Company for a project to produce various products from WPC (Wood Plastic Composite), used in construction, with an investment of $1.5 million. The agreement was signed by Omar Al Siabi, the company's CEO.
*An agreement worth $1.5 million was signed with Al Farida Industry & Trade to produce colour masterbatch, signed by Hussein Mohammed, the company's CEO.
The OQ's project is mainly focused on localising specialised plastic industries and integrating cutting-edge technology designed to enhance Oman's value proposition.
Additionally, it presents incentives for investors, creating an attractive investment environment for both regional and global investors, it added.-TradeArabia News Service