Omani state-controlled petrochemical producer OQ has signed nine agreements worth $88mn with various downstream companies to establish polymer projects in its upcoming Ladayn Polymer Park (LPP) located in Sohar Industrial City.
These agreements were signed in line with Oman's Vision 2040, which aims to develop Oman's private sector while moving away from hydrocarbon use.
The park will have an area of 1mn m². LPP has been set up to integrate virgin plastic converters and plastic recyclers to increase Oman's plastic self-sufficiency and circularity. OQ estimates that the agreements will contribute around $46mn annually to its in-country value, while creating 290 job opportunities directly and 600 indirectly. The in-country value is economic value added from local operations and spend retained in the country.
OQ is a key Middle East polyethylene (PE) and polypropylene (PP) producer for buyers in the region and in south Asia, southeast Asia and China. OQ operates a 340,000 t/yr PP plant. It started up a new 300,000 t/yr PP plant, a 400,000 t/yr high density PE (HDPE) plant and a 440,000 t/yr linear low PE/HDPE swing plant in 2021. These plants are located at Liwa Plastics Industries Complex in Sohar Industrial City.
OQ secured a deal in February to be the main supplier of required raw materials at preferential rates for the development of projects at LPP in Sohar Industrial City.
In a related development, state-owned The Public Establishment for Industrial Estates (Madayn) signed seven land usufruct agreements for a duration of 33 years at reduced prices. The duration of the agreement can be extended.
Developers of the project are aiming to house producers of plastic products used in sectors like construction, infrastructure, packaging, hygiene, healthcare products, textiles and furniture, at the site.
| Agreements OQ has signed for Ladayn Polymer Park | ||
| Company | Product | Value of deal |
| Mohammad Riaz Sons Plastic | Advanced sustainable plastic food packaging components | $35mn |
| Napco | Packaging bags for petrochemical products, plastic compounds and packaging | Starts at $15mn, rises to $48mn |
| MAK Germany GmBH | Specialised plastic compounds | $11mn |
| Madayn Plastic Company SPC | Shrink wrap tapes, packaging bags for petrochemical products, food packaging and frozen food bags | $8mn |
| Jil Technology | Innovative 3D manufacturing | $6mn |
| Jcoplastics | Plastic waste containers, boxes and pallets | $6mn |
| Gemini | Plastic recycling and sustainability to manufacture plastic products | $3mn |
| National Plastic Lumber | Wood plastic composite products used in construction | $1.5mn |
| Al Farida Industry & Trade | Colour masterbatch | $1.5mn |
| Source: OQ press release | ||
