Oman’s leading global integrated energy company OQ 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.
Under this MoU, Madayn has allocated 1 million m2 of land in the Sohar Industrial City for the park to manufacture semifinished and finished high value-added plastic products.
According to the company, “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.”
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 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 converters, recyclers, and testing facilities.
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, textile, agriculture, construction to furniture, and more, the company said.
Hilal bin Ali al Kharusi CEO- Commercial & Downstream OQ
“This MoU will fill the gap in plastic converters in this industry and fuel Oman’s underdeveloped polymer downstream industry. It is part of OQ’s 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.”
The project will play a key role in creating job opportunities in an increasingly competitive and innovation-based economy, broaden the scope of the private sector’s contribution to diversified economic growth, and encourage the shift to higher value-added sustainable products.
Mr. Hilal bin Hamad al Hasani, CEO of Madayn noted that, “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 growth potential. 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.”
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