$50m investment to boost PET waste recycling

MUSCAT, DEC 23
In a significant boost for efforts to recycle PET plastics — currently estimated to account for roughly half of all plastic waste ending up in landfills — an agreement has been signed for the establishment of a modern, integrated recycling facility at Salalah Free Zone in Dhofar Governorate, with total investment of up to $50 million across multiple phases.
According to Salalah Free Zone, Next Generation Recycling Solutions will develop the plant on a 15,000-square-metre site to produce high-quality, hot-washed, food-grade rPET flakes — cleaned and shredded fragments of recycled polyethylene terephthalate used as a secondary raw material in the manufacture of new plastic products.
“The project represents a long-term investment exceeding $50 million, to be implemented in multiple phases over a 30-year period, covering capacity expansion of existing PET recycling lines, development of collection facilities across Oman, and the potential future recycling of other plastic polymers such as HDPE and LDPE,” the free zone authority said in a statement.
The project is intended to support the growth of an integrated industrial ecosystem while leveraging Salalah’s strategic logistics position as a key export hub serving European and US markets, in line with Oman Vision 2040, it added.
Next Generation Recycling Oman was established through a strategic partnership with a leading Indonesian recycled PET producer founded in 2019 in Tangerang’s Periuk district. The partner’s PET flakes and granules are supplied to global textile and food-packaging markets across the Middle East, Europe and the US, contributing to the reduction of plastic and microplastic pollution.
While the circular economy concept has gained increasing traction in Oman, PET waste recycling efforts have so far made only a limited impact on the scale of the challenge. PET waste in the Sultanate mainly comprises single-use water, soft drink, juice and edible oil bottles, along with clear food containers and some household and personal-care packaging. These are generated largely by households, retail outlets, offices and the hospitality sector, with much of the waste still disposed of through mixed municipal streams.
Initiatives such as reverse vending machines to encourage bottle collection and reduce landfill waste have been introduced, particularly in Muscat, but nationwide segregation, collection and recycling infrastructure remains limited. As a result, PET recycling is not yet sufficiently scaled or comprehensive to manage the country’s growing waste stream effectively.
However, with the government prioritising circular economy and recycling objectives in line with Oman Vision 2040 and Net Zero targets, a number of local SMEs have begun investing in commercial-scale facilities to address the PET waste challenge.
Among them is Green Muscat Investment and Development Company, which has announced plans to establish a 200-metric-tonnes-per-day PET waste processing plant in North Al Batinah Governorate, close to Sohar Port. Recycled PET flakes from the plant will be targeted at multiple industries, including packaging and textiles.
Similarly, Muscat-based Golden Future Recycling is focusing on the recovery and processing of PET plastic waste, converting it into high-quality recycled granules and flakes for reuse in packaging and industrial applications.
In addition, some projects unveiled under the recently inaugurated Ladayn Polymer Plastics Programme involve the plastics recycling value chain, including PET-related recycling. One such project, Gemini Corporation, focuses on plastic recycling and sustainability, incorporating recycled plastics as inputs for the manufacture of downstream products.