Deals signed to develop $550mn PTA and PET production facilities in Sohar

28/01/2026 06:18 AST

Sohar Port and Freezone has signed two agreements with subsidiaries of MAK Germany - Sohar Petrochemicals (a Freezone company) and Sohar International Minerachem - alongside OQ Refineries and Petroleum Industries Company, to develop an integrated industrial complex for the production of purified terephthalic acid (PTA) and polyethylene terephthalate (PET).

The development further strengthens Sohar Port and Freezone's position as an advanced industrial and logistics ecosystem that connects global supply chains with value-added manufacturing.

The project follows a strategic decision to relocate an existing PTA and PET production facility from the Port of Rotterdam to Sohar Port and Freezone, reflecting MAK Germany's confidence in Oman's industrial environment and in Sohar Port and Freezone's ability to attract major global projects. The project represents an investment of approximately $550mn and will be developed across 11.9 hectares at Sohar Port and 53.6 hectares at the Sohar Freezone, reinforcing Sohar's position as a leading industrial hub for petrochemicals and their downstream industries.

The project is governed by a set of integrated agreements, including a sub-usufruct agreement at Sohar Port, a land lease agreement at the Sohar Freezone, and a product supply agreement with OQ to secure long-term feedstock supply. Together, these agreements create a fully integrated industrial platform linking port operations, infrastructure and downstream manufacturing.

Structured as a dual-location development, the Sohar Freezone will host the PTA and PET production facilities, while Sohar Port will accommodate bulk storage, feedstock handling and pipeline interfaces, ensuring efficient, safe and reliable material flows as well as long-term operational efficiency.

Hojat Mohammadi Imir, CEO and shareholder of MAK Germany, said, "This project represents a major strategic milestone for MAK Germany. Relocating our PTA and PET production platform to Sohar reflects our confidence in Oman's industrial environment and in Sohar Port and Freezone as a world-class destination for complex petrochemical investments. With a production capacity of 1.5mn tonnes of PTA and PET polymers, and an integrated model combining port logistics, pipeline infrastructure and freezone manufacturing, Sohar Port and Freezone provides the scale, efficiency and long-term reliability required to support our global growth ambitions."

Emile Hoogsteden, CEO of Sohar Port, said, "The significance of this project lies in the strategic decision to move into an operating environment capable of supporting complex industrial operations with efficiency and long-term stability. Sohar Port and Freezone provides an integrated operating ecosystem that brings together infrastructure, logistics services and industrial manufacturing within a single framework, which is a critical factor in the relocation decisions of global industrial projects."

Raid al Rubaiey, CEO of Sohar Freezone, said, "The land lease agreement further consolidates Sohar Freezone's position as a strategic hub for large-scale downstream industrial development and sustainable long-term value creation. It directly supports Oman Vision 2040 by advancing industrial diversification, strengthening in-country value and accelerating export-oriented growth. The agreement also reinforces the freezone's role as a core pillar of Sohar Port and Freezone's integrated industrial ecosystem, where logistics, energy and manufacturing operate within a single, efficient and globally competitive framework."

Feedstock supply for the project will be secured through a long-term agreement with OQ, under which paraxylene (PX) will be supplied as the primary input for PTA production. Additional raw materials, including monoethylene glycol (MEG) and acetic acid, will be imported through Sohar Port and transferred via a dedicated pipeline network routed through Advario's storage infrastructure.

Ashraf Hamed al Mamari, Group CEO of OQ, said, "These two agreements reflect the national role played by OQ and its subsidiaries in redirecting locally produced primary resources into value-added downstream industries within Oman, supported by an integrated operating model. They form part of a clear localisation pathway that positions industrial investment as a tool to develop more connected and sustainable national production capabilities. This approach builds integrated value chains by linking production, manufacturing and logistics."

The facility will supply PTA and PET resin to markets across the Middle East, Africa, Asia and Europe. These materials are essential for industries such as food and beverage packaging, polyester fibres, plastic films, textiles and advanced materials. By converting upstream feedstock into value-added products, the project deepens Oman's petrochemical value chain and strengthens export-oriented manufacturing.

Muscat Daily