SOHAR Port signs land lease agreement with MAK Sohar Chemical

By Arya M Nair, Official Reporter
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SOHAR_MAK Sohar Chemical partnership

SOHAR Port and Freezone has signed a land lease agreement with MAK Sohar Chemical Industries (FZC) LLC for two projects covering 5.8 hectares of land representing a substantial $11 million investment in SOHAR Freezone. 

The first project involves establishing a production facility for engineering polymers, thermoplastic elastomers (TPE), thermoplastic olefins (TPO), special masterbatches, and compounds, with an advanced urea inhibition unit featuring specific coating and packaging capabilities.

The manufacturing facility will source raw materials locally from Oman (OQ Ladayn Park), regionally and in Europe to produce TPE, TPS, and various compounds for domestical and international markets in North America, Europe, Africa and Asia, with an annual production capacity of 25,000 tons.

Additionally, the facility will produce advanced urea inhibition coatings tailored for European markets, packaged in 25, 50, and 1000 kg bags. The project will utilize feedstock such as granular urea, Prilled urea, monoammonium phosphate (MAP), diammonium phosphate (DAP), and N-(n-butyl) thiophosphoric triamide (NBPT) from local and regional markets. The finished products, including granular urea with inhibitor and MAP/DAP will target markets in Europe and Africa.

These projects are set to utilize modern technology and enhance innovation, leveraging German expertise to enhance supply chain efficiency and meet growing market demand, thereby creating substantial added value in the global chemicals market for home appliances, automotive industry, medical equipment and water supply infrastructure.

Mr. Jens Frickel, Sales Manager at M.A.K. Germany, stated that, “We are thrilled to embark on these projects with SOHAR Freezone. MAK Sohar Chemical Industries has agreed with OQ- Ladayn Park- for the feedstock to convert raw and pure olefins into advanced engineering compounds and polymers. As an Omani entity in the SOHAR Freezone, our aim is to become one of the key players in the global market for TPO and TPE polymers and downstream olefins industries.”

Frickel added that, “Establishing our modern plant in SOHAR Freezone, utilizing German technology and cutting-edge know-how, marks a significant milestone for our company. These initiatives will enhance our operational capabilities and strengthen our position in the global chemicals market. We look forward to leveraging SOHAR Freezone’s strategic advantages to meet the increasing demand for high-quality chemical products in the Middle East, Europe, India, China and beyond.”

Omar bin Mahmood Al Mahrizi, CEO of SOHAR Freezone and Deputy CEO of SOHAR Port, said that, ” These projects mark a significant advancement in the chemicals sector at SOHAR Port and Freezone, enhancing our capabilities and contributing to the global market. Leveraging advanced technology and expertise, we aim to meet market demands, and explore transformative projects for economic diversification. We are committed to fostering a supportive environment for business and innovation, enhancing international cooperation and sustainable investments to strengthen our competitive edge and achieve sustainable growth in advanced polymer and chemical industries.”

SOHAR Freezone is home to various industries from 53 countries reinforcing its position as an engine of economic diversification. With 85 percent of Phase I fully leased, Phase II is underway offering a total land area of up to 675 hectares to meet the expanding needs for industrial and commercial space.

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