Fluor to Act as Advisor for Octal's 500,000-Ton Middle East PET Expansion

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Researched by Industrial Info Resources (Sugar Land, Texas)-- Fluor Corporation (NYSE:FLR) (Irving, Texas) has been retained as technical advisor for the expansion of Oman's Octal Petrochemicals polyethylene terephthalate (PET) project in the Salalah free zone in the southeastern part of the country. The addition of 500,000-ton-per-annum (TPA) of PET resins production capacity by May 2010 will make Octal one of the largest polyester manufacturers in the Middle East and one of the largest single-site producers outside China. The company is targeting the soft-drink and bottled-water markets in Europe, the U.S. and the Middle East for its PET production.

The $300 million first phase of the plant will produce 150,000 TPA of PET by the end of 2008, by which time total combined production capacity of PET and APET (amorphous polyethylene terephthalate) will total 330,000 TPA. When the expansion has been completed, the facility will have a capacity of 800,000 TPA. The additional 500,000 tons will come on stream in two stages: 250,000 tons on March 2010 and 250,000 tons in May 2010.The first MEG tank of the liquid chemicals terminal is complete and water treatment facilities are in place. Environmental permits for the expansion have been confirmed.

Octal Chairman Sheikh Saad Suhail Bahwan said that between 2009 and 2012, more than 20 million metric tons of plastic raw materials capacity will come on stream in the Gulf. Octal, he said, would harness the region's strategic feedstock advantage and Salalah's unique location to deliver major growth in PET resin production for export, as well as significant cost savings through the company's integrated, on-site operational model. He added that the expansion strategy would see Octal develop into a homegrown global petrochemicals leader.

When complete, the expanded plant's total investment could rise to $1 billion. Global export sales capacity is expected to reach $500 million by the end of 2008, and with the completion of the final phase, net exports will reach $1.1 billion per year.

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