Octal chairman, Sheikh Saad Suhail Bahwan, and Bank Muscat chief executive, AbdulRazak Ali Issa, formally agreed to a 166.5 million dollar loan facility for Octal’s APET sheet packaging plant, which is aiming for a 20 percent share of the global market for APET.

The facility is made up of a 148.5 million dollar term loan, of which 34.5 million dollars has been syndicated to Bank Dhofar, and 18 million dollars in working capital. Financing was raised in three stages over the last year and completes Octal’s initial 300 million dollar investment in proprietary technology and custom-made production lines.

Sheikh Saad Suhail Bahwan said, “Octal is redefining the global plastic packaging industry and the initiative is taking place here in Oman, with Omani investors and the support of government.”

Octal’s Oman-based investors include NIFCO (National Investment Fund Company), Muscat Overseas, Oman Investment Company, Malatan Trading and Contracting, Oman and Emirates Investment Holding, Suhail Bahwan Group, DIDIC, as well as BankMuscat. Individual and institutional investors in Saudi Arabia, Kuwait and the US are also committed to the project.

Octal Petrochemicals expects sales of its APET (amorphous polyethylene terephthalate) sheet packaging to reach 500 million dollars per annum by the end of next year. Production capacity now stands at 30,000 metric tons per annum, but that figure will exceed 300,000 tpa by June 2008 as Octal corners a fifth of the world market for APET sheet, which was valued at 2.25 billion dollars last year.

Octal’s managing director Nicholas Barakat said, “We’re excited to be the first company in the Salalah Free Zone and proud that more than a third of our 75-strong workforce is from Oman.”

“Oman was selected for the Octal complex because of its excellent location on the East-West shipping lanes, which enables us to reach key destinations around the world within 18 days. The Sultanate also provides ready access to raw materials.

“We have 500,000 square metres of land on which to expand our operations, and ambitious growth plans in place that will see Octal compete internationally and make a major contribution to the local economy.”