OQ, the global integrated energy group of the Sultanate of Oman, and the Public Establishment for Industrial Estates (Madayn) have signed a Memorandum of Understanding (MoU) to set up a plastics park in Sohar Industrial City with support from Oman Vision 2040 implementation Follow up Unit.
The MoU comes in line with one of Oman Vision 2040’s objectives: achieving a competitive, diversified and integrated economy as the project is envisaged to open major investment opportunities, especially in plastics conversion, with OQ as the major provider of raw materials.
Under this MoU, Madayn has allocated 1 million m2 land in the Sohar Industrial City for the park to manufacture semifinished and finished high value-added plastic products.
The project will play a key role in creating job opportunities in an increasingly competitive and innovation-based economy, broaden the scope of private sector’s contribution to diversified economic growth, encourage the shift to higher value-added sustainable products.
OQ will remain the major provider of high-quality raw material for plastic-based products required for basic uses as sustainable packaging to specialty uses in healthcare, fibers and textile, agriculture, construction to furniture and more.
The plastics park, equipped with the requisite facilities and offering streamlined processes for ease of doing business, will attract more domestic and international investors in the plastic value chain like raw material suppliers, additive manufacturers, plastic convertors, recyclers and testing facilities.
Madayn has offered the land at incentivised rates and the Plug and Play concept that offers common facilities like workshop, administrative building, an excellence centre, lab, and recycling at attractive rates besides power, gas and telecommunications lines.
The plastics industrial park is located 16 km from Suhar Airport, 18 km from Sohar port and 20 km from the OQ raw material plant.
The park will also open investment in new, breakthrough, innovative, high quality and sustainable products for polymer conversion to gain competitive advantages.
Easily available raw material from OQ at competitive prices will result in minimising raw material stocks, shortening delivery time and saving transportation cost.
As investments grow, the plastics park will help develop an industry-specific local equipped with technical skills through training and integration of well-educated unemployed young Omanis and also by introducing polymer curriculum in Oman’s universities.
Hilal bin Ali al Kharusi, CEO – Commercial & Downstream, OQ, said, “This MoU will fill the gap in plastic convertors in this industry and fuel Oman’s underdeveloped polymer downstream industry. It is part of OQ plans to create opportunities from the conversion of its raw material and diversify economic growth. We see major potential in the plastics industry as demand will continue to remain high from various important sectors like healthcare, food packaging, construction and agriculture.”
Hilal bin Hamad al Hasani, CEO – Madayn, added: “Our mission is to help industries find their true potential by meeting their basic requirements and supporting them in their growth. The plastics industry is one area that holds great potential of growth. We are happy to sign this MoU with OQ which has foreseen the returns investments in this area will bring for the people of Oman.”
Also present at the signing were Dr Khamis bin Saif al Jabri, Chairman of the Oman 2040 Vision Implementation Follow-Up Unit, Dr Saleh bin Said Masan, Under-Secretary for Commerce and Industry at the Ministry of Commerce, Industry and Investment Promotion, and senior officials of OQ Group.
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