OQ Refineries and Petrochemical Industries, a subsidiary of OQ, the global energy group, has signed nine investment deals worth a total of $88 million to establish industrial projects in the Ladayn Polymer Park in Suhar Industrial City. 

 

The deals include 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. The agreement was signed on behalf of the company by Issam Chaaya, Vice President for Chemicals & Petrochemicals; and an agreement with MAK Germany GmBH to establish a project worth $11 million to produce specialised plastic compounds, signed by Mohammad Amiri, Executive Director.

 

The fourth agreement was with Madayn Plastic Company SPC for $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; the fifth a $6 million agreement with Jil Technology for innovative 3D manufacturing, signed by Ghada Al Yousef, Founder and CEO.

 

Plastic waste containers

The sixth deal was 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; the seventh agreement was 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.

 

The final two agreements were 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; and an agreement worth $1.5 million signed with Al Farida Industry & Trade to produce colour masterbatch, signed by Hussein Mohammed, the company's CEO.

 

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.

 

Promoting Omani goods

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). 

 

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). 

 

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. 

 

This initiative comes in line with Oman Investment Authority’s vision in enriching In Country Value through empowering the private sector, localising local industries, strengthening the local economy, and developing and stimulating small and medium enterprises.

 

Key project

Strategically located in Suhar 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. 

 

The project's focus on localising specialised plastic industries and integrating cutting-edge technology is designed to enhance Oman's value proposition. Additionally, it presents incentives for investors, creating an attractive investment environment for both regional and global investors.

 

The agreements were signed by Hilal bin Ali Al Kharusi, Chief Executive Commercial & Downstream at OQ, alongside representatives of the following companies.

 

Land usufruct agreements

In a related development, The Public Establishment for Industrial Estates ‘Madayn’ also signed seven land usufruct agreements with a duration of extendable 33 years, at reduced prices with investors. These agreements were signed by Dawood bin Salim Al Hadabi, CEO of Madayn. Additionally, Omar Mahmood Al Mahrizi, CEO of Suhar Free Zone, signed an agreement with Gemini Corporation aimed at recycling plastic.

 

Al Kharusi said: "These agreements reflect OQ's commitment to enhancing the sultanate's position in the development of the manufacturing industries, supporting small and medium enterprises (SMEs), particularly those involved in the industrial sector, to establish national industries in various fields. This effort aims to achieve self-sufficiency in products and position the Sultanate as a major exporter of these products.”

 

“In addition to supporting the manufacturing industries that will be established in the Ladayn Polymer Park, OQ will purchase manufactured products such as plastic pallets and packing bags for polymer granules. OQ is also committed to supporting plastic recycling plants, utilising the latest technologies that contribute to reducing negative use and environmental impact,” he added.

 

Pivotal project

Al Hadab said: "The Lidayn Polymer Park in Suhar Industrial City is a pivotal project designed to maximise in-country value by localising specialised plastic industries and leveraging advanced technology, offering enticing opportunities for investors."

 

Khalid bin Said Al Shuaib, Head of the National Programme for Investment and Exports Development (Nazdaher), discussed the programme's role in this important project, which supports the manufacturing sector in the downstream petrochemical industry. The programme collaborates with OQ and the Public Authority for Special Economic Zones and Free Zones (OPAZ), as well as the industrial areas, to strategically target and attract investors through a comprehensive marketing plan encompassing multiple countries. 

 

“This synergistic collaboration has led to the formation of a joint task force among the three entities, which has notably succeeded in drawing a number of committed investors, as demonstrated by the signing of these agreements today.

 

"We are delighted to collaborate with OQ in our mission to enhance the resilience of the local supply chain through innovative 3D manufacturing," said Ghada Al Yusuf, Founder and CEO of Jil Technology. “Jil Technology is dedicated to enabling Oman Vision 2040 for a robust plastic sector, and our strategic placement within Oman's plastic complex demonstrates our commitment to this goal."

 

Mohammed Al Loughani, the CEO of Madayn Plastic, stated that their agreement with OQ was influenced by the support and concessions offered by OQ in lowering the cost of raw materials, crucial for the industrial facility they plan to establish in the Ladayn Polymer Park. He added: “We are extremely delighted to invest in the Ladayn Polymer Park, viewing it as a leading destination for investors in the plastic industry.”--TradeArabia News Service