Oman: OQ Refineries and Petrochemical Industries, a subsidiary of the global energy group OQ, has recently sealed nine significant investment deals, injecting a substantial $88 million into the burgeoning Ladayn Polymer Park situated in Sohar Industrial City, Oman.
To kickstart this transformative initiative, OQ has entered into a pivotal $35 million agreement with Mohammad Riaz Sons Plastic Company. Zain Mohammad Riaz, the Managing Director, expressed the company’s commitment to the effort, stating, “This aims to achieve self-sufficiency in products and position the Sultanate as a major exporter of these products.” This partnership focuses on the production of advanced sustainable plastic food packaging components.
Following this groundbreaking agreement, Issam Chaaya, Vice President for Chemicals & Petrochemicals, inked a deal with Napco National, an investment ranging from $15 million to $48 million to manufacture packaging bags for petrochemical products, plastic compounds, and packaging.
Moreover, for the creation of specialized plastic compounds, a noteworthy $11 million project was established with MAK Germany GmBH, signed by Mohammad Amiri, Executive Director. Each agreement reflects a strategic move towards economic diversification and aligns with Oman Vision 2040.
Mohammed Al Loughani, Chairman of Madayn Plastic Company SPC, put pen to paper on an $8 million agreement to produce shrink-wrap tapes, packaging bags, and frozen food bags. Al Loughani expressed his optimism, saying, “We are extremely delighted to invest in the Ladayn Polymer Park, viewing it as a leading destination for investors in the plastic industry.”
Furthering their commitment to innovation, a $6 million agreement with Jil Technology for 3D manufacturing was signed by Ghada Al Yousef, Founder and CEO. Al Yousef highlighted, “Jil Technology is dedicated to enabling Oman Vision 2040 for a robust plastic sector.”
The economic impact of these collective investments is profound, with Hilal bin Ali Al Kharusi, Chief Executive of Commercial & Downstream at OQ, affirming, “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).”
Ladayn Polymer Park’s Transformative Impact
Strategically positioned in Sohar Industrial City, the Ladayn Polymer Park is more than just a project; it is a catalyst for Oman’s self-sufficiency in plastic products. The CEO of Madayn, Dawood bin Salim Al Hadabi, stated, “The Ladayn Polymer Park is a pivotal project designed to maximize in-country value by localizing specialized plastic industries and leveraging advanced technology.”
These initiatives align seamlessly with OQ’s dedication to boosting In-Country Value (ICV), contributing an estimated $46 million annually. Additionally, the agreements are set to create around 290 direct job opportunities and an additional 600 indirect jobs, further solidifying Oman’s economic landscape.
The CEO of Sohar Free Zone, Omar Mahmood Al Mahrizi, emphasized the broader impact, stating, “These agreements reflect OQ’s commitment to supporting the manufacturing industries and establishing national industries in various fields.”
As OQ propels economic growth in Oman, these investment agreements stand as a testament to the company’s vision and commitment, enhancing the Sultanate’s industrial landscape and creating lasting opportunities for both regional and global investors.