DUSSELDORF, Germany - Less than two weeks after announcing plans for a 500,000 metric ton per year capacity expansion of its integrated PET resin and APET facilities in the Middle East, Octal Holding and Company SAOC (www.octal.com) is commencing sales of its near-term PET resin capacity.
Of Octal's 300,000 ton 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. The announcement was made here at Interpack, the world's largest packaging fair, in Düsseldorf, Germany.
Octal's decision to begin offering PET resin allocations is in response to continued demand globally for PET resin which is running from four to ten percent, depending upon the region. We see particular growth opportunities for our PET resin in the soft drink and bottled water industries, said William J. 'Joe' Barenberg, Jr., chief operating officer of Octal, based out of the company's North American sales office in Dallas.
Octal invested more than $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 metric tons of annual capacity.
A world scale integrated complex with industry leading process technology allows us to support all segments of the beverage market. In addition, our strategic location in the Middle East was carefully selected to facilitate reliable logistics to customer locations around the world, said Mr. Barenberg.
PET resin represents a nearly $25 billion market annually. It is the preferred packaging polymer for soft drinks, juices and bottled water, not to mention household goods such as detergents, cleaners, personal care items and consumer goods packaging.