Octal targets $200m sales to Europe

A subsidiary of Octal Holding and Co. SAOC, Octal now earns more than half of its revenue from exports to Europe.

Octal will be a first-time exhibitor at Interpack, which takes place in Dusseldorf, Germany from April 24-30. Octal will display the efficiency of its integrated PET resin and APET sheet manufacturing facility, located in Salalah Free Zone. Visitors to the 350 square-metre stand will be able to see and order both Octal's PET resin and the APET sheet product, which will be displayed in roll form.

Rashid Saif Al Sadi, Director of Octal Petrochemicals, said:

"We are experiencing strong demand from the UK, Germany, the Benelux countries and Southern Europe, and the potential for growth across the European continent is significant. That is why we are making such a large investment in Interpack, of around $300,000. We are delighted to be flying the flag for the Oman petrochemicals industry and Salalah Free Zone with one of the exhibition's largest stands."

Al Sadi said: "We will be sending a large delegation from the US and Oman to Germany, which shows the success Octal is having in Europe. We are in talks with the major European packaging companies, thermoformers and retail brands, and the next step this year will be to open a sales office on the continent, probably in France."

Octal expects total sales of its APET (amorphous polyethylene terephthalate) sheet packaging and PET resin to reach $500m per annum by the end of 2008, around one fifth of the world market for APET, and to achieve a solid position in the growing European PET industry.

Octal, which is investing $300m in proprietary technology and custom engineered production lines to manufacture both PET resin and APET rigid films, started initial operations in December 2006. Global monthly sales currently exceed $3.5m, a reflection of the growth in convenience food packaging and the increasing use of clear rigid packaging for consumer products.

Octal's plant is the first of its kind to be developed that is dedicated to APET production from resin to sheet. Sophisticated equipment developed by Octal delivers an APET sheet with superior gauge control, gloss and transparency, factors which save on production costs. The uniformity of Octal's PET resin is another cost advantage.

Nicholas Barakat, Managing Director of Octal, said: "The growth of APET as a packaging material has been strong. In fact, global trends show that there is a three to four million metric ton market in the making. We aim to deliver the highest quality and most consistent APET sheet to our thermoforming, brand and retailer partners, enabling them to achieve the highest level of productivity and yield. The PET market is also growing rapidly, that's why we are positioning ourselves as the largest PET manufacturer in the Middle East."

Interpack 2008 will showcase all components of the packaging industry: from the production and refinement of packaging products and packaging materials, to quality assurance and consumer protection, to processes and machinery for the packaging of all product types including food and drinks, pharmaceuticals, cosmetics, consumer and industrial goods. Interpack is expected to attract around 300,000 visitors this year.