MUSCAT: SOHAR Port and Freezone has signed two landmark agreements with subsidiaries of MAK Germany, alongside OQ Refineries and Petroleum Industries Company, to develop an integrated industrial complex for the production of Purified Terephthalic Acid (PTA) and Polyethylene Terephthalate (PET). The project further cements SOHAR’s position as a globally competitive hub for petrochemicals and downstream manufacturing.
The agreements were signed with Sohar Petrochemicals, a Freezone company, and Sohar International Minerachem, covering the development of a fully integrated PTA and PET platform spanning both SOHAR Port and the SOHAR Freezone. Valued at approximately $550 million, the project will be developed across 11.9 hectares within SOHAR Port and 53.6 hectares in the SOHAR Freezone.
The investment follows a strategic decision by MAK Germany to relocate an existing PTA and PET production facility from the Port of Rotterdam to Oman. The move reflects growing confidence in Oman’s industrial environment and in SOHAR Port and Freezone’s ability to host large-scale, complex industrial operations with long-term efficiency and stability.
Under the integrated structure of the project, the SOHAR Freezone will host the core PTA and PET production units, while SOHAR Port will support bulk storage, feedstock handling and pipeline interfaces. This dual-location model is designed to ensure seamless material flows, high safety standards and sustained operational efficiency over the long term.
The development is governed by a suite of coordinated agreements, including a Sub-Usufruct Agreement at SOHAR Port, a Land Lease Agreement at the SOHAR Freezone and a Product Supply Agreement with OQ to secure long-term feedstock availability. Together, these agreements create a single, end-to-end industrial platform that links port infrastructure, logistics services and downstream manufacturing.
Hojat Mohammadi Imir, CEO and shareholder of MAK Germany, described the project as a major strategic milestone for the group. “Relocating our PTA and PET production platform to SOHAR Port and Freezone reflects our confidence in Oman’s industrial ecosystem and in SOHAR as a world-class destination for complex petrochemical investments,” he said. He added that the facility will have a combined production capacity of 1.5 million tonnes of PTA and PET polymers, supported by an integrated logistics and infrastructure model tailored to the company’s global growth ambitions.
Emile Hoogsteden, CEO of SOHAR Port, said the project highlights the importance of operating environments capable of supporting sophisticated industrial activity. “SOHAR Port and Freezone brings together infrastructure, logistics and industrial manufacturing within a single ecosystem. This integrated framework is increasingly a decisive factor for global investors considering relocation or expansion,” he noted.
Raid al Rubaiey, CEO of SOHAR Freezone and Deputy CEO of SOHAR Port, said the land lease agreement reinforces the Freezone’s role as a strategic hub for downstream industrial development. “This project directly supports Oman Vision 2040 by advancing industrial diversification, strengthening in-country value and accelerating export-led growth,” he said, adding that it underlines the Freezone’s role as a core pillar of SOHAR’s integrated industrial ecosystem.
Feedstock supply for the complex will be anchored through a long-term agreement with OQ, under which Paraxylene (PX) will be supplied as the primary input for PTA production. Additional raw materials, including Monoethylene Glycol (MEG) and Acetic Acid, will be imported via SOHAR Port and transferred through a dedicated pipeline network routed through Advario’s storage facilities. This pipeline-based logistics model will significantly reduce truck movements, enhance health, safety, security and environmental performance, and ensure continuous, reliable operations.
Ashraf Hamed al Mamari, Group CEO of OQ, said the agreements reflect OQ’s national role in channeling locally produced resources into higher-value downstream industries. “This integrated approach strengthens value chains by connecting production, manufacturing and logistics, reinforcing Oman’s industrial base and its position in regional and global supply chains,” he said.
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