Reinforcing its position as the world’s leading supplier of eco-conscious and high performance DPET sheet and PET resin, Oman-based Octal has announced growth of 16 per cent in sales for 2017 with production already under way on contracted orders to the value of $260 million.

In its 10th consecutive year of growth since its establishment in 2006 and with four purpose-built plants in Oman, Saudi Arabia, and the US, Octal’s products now comprise 7.3 per cent of Oman’s non-oil exports, the company said.

The company is now geared for its third phase of growth – downstream expansion and value realisation, with the long-term goal of an IPO to support global expansion. The growth in 2017 and 2018 is expected to mostly come from the application of new technologies in the pipeline, it said.

Octal CEO Nicholas Barakat said: “Octal’s global reach contributes to the diversification of Oman’s economic base by generating further direct and in-direct employment opportunities for the people of the sultanate and also to augmenting support for the domestic economy as it prioritises local suppliers and service providers. 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.”

Next Generation PET
The upward trajectory in 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. Barakat added: “Octal has invested and will continue to invest in a phased approach to capture end-use applications, where the next generation PET becomes the optimal solution when compared to applications with other polymers.”

Octal’s Phase 1 focused on achieving leadership position in established markets with the introduction of its proprietary 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’s vision is to expand the universe of DPET applications through the deployment of new processes and downstream growth.

Attracting the attention of the market in particular this year are the company’s recently launched, first of its kind, new process technologies for DPET pots for yogurt and dairy products and modified PET disposable cups, lids, cutlery and food service applications, which delivers performance while using lower energy. Contributing to Octal’s sales momentum has also been the successful expansion of its global reach to the high volume markets in the US where it plans rapid growth with applications for the dairy, bakery and other food industry items. During 2017, it will benefit from the introduction of three new products boosting unique properties to Octal production lines.

Soaring to New Heights
Always pushing boundaries and expanding its horizons, Octal currently has a number of important new packaging solutions under development in its state-of-the-art research facility in Salalah. Amongst its industry firsts in 2016 were the introduction of modified PET to replace high impact packaging and also a ‘form-fill-seal’ easy to recycle application using DPET, developed at the request of a major European cheese packaging manufacturer.

Octal is also aiming to integrate its US and Saudi Arabia facilities to produce packaging material in addition to their previous functions. With this, these facilities will be able to produce everything required throughout the manufacturing phase from raw materials to the final product at a significantly lower cost. This will provide Octal with greater market reach and will take its capacity to new heights.
 
PET World Leader
William J Barenberg, chief operating officer and executive vice president at Octal, highlighted how strategic investment has been key in the company’s achievements to date. “From inception, Octal has maintained an unwavering focus on investment in capacity, proprietary technology and innovation. This has enabled us not only to accomplish sales growth year-after-year but also to become the recognised world leader in PET sheet and the industry reference point for superior product performance and environmental standards.”

Barenberg added: “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.”

Founded with an investment of $600 million, Octal operates on strong eco principles, prioritising the stewardship of natural resources. In 2015, it had an export value of $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.  – TradeArabia News Service