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05-09-2008

Octal: Resin Sales as Part of Expansion Strategy

Less than two weeks after announcing plans for a 500,000 tonnes per year capacity expansion of its integrated PET resin and APET facilities in the Middle East, Octal Holding and Company SAOC is commencing sales of its near-term PET resin capacity.

Of Octal’s 300,000 tonnes per year capacity, to start up in the fourth quarter of 2008, half will be reserved for placement with resin customers. The volume will be made available at this level until the startup of Octal’s expanded facilities at which time greater quantities will be available. These resin sales mark the beginning of Octal’s expansion into the soft drink and bottled water market segment.

Octal invested more than USD 300 million in proprietary technology and custom-made production lines for a new complex, located in the Salalah Free Trade Zone in the Sultanate of Oman. The facility, which is focused on producing PET resin and APET sheet, is on schedule for launch in the fourth quarter of 2008. The company’s phase two expansion, scheduled for May 2010, will make it one of the world’s largest polyester producers with 800,000 tonnes of annual capacity.

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