Oman oil giant in $850m chemical plant JV deal

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The new plant will be built in the Port of Sohar in Oman.

The new plant will be built in the Port of Sohar in Oman.

Oman Oil Company and Korea's LG International (LGI) have signed a joint venture agreement to establish a $850m chemical plant in the Port of Sohar.

The purified terephthalic acid (PTA) and poly ethylene terephthalate (PET) project is slated for completion in 2016, the companies said in a statement.

The new joint venture company will be owned 70 percent by Oman Oil Company and 30 percent by LG International, the statement added.

The plant is set to produce in two phases a total of 1.1 million tonnes of PTA and 500,000 tonnes of PET per annum.

Nasser bin Khamis Al Jashmi, chairman of OOC, said: "The development of the PTA/PET complex is an important investment project and will enable further downstream projects based on PET.

"In addition, the project will make available additional training and employment opportunities for Omanis."

Kent Lee, senior vice president of LGI, added: "This project is a very important project for our two countries. We are determined to put all necessary efforts to see the project is successfully commissioned in 2016."

PTA is mainly used in the production of bottles for packaging of carbonated soft drinks, drinking water, cosmetics, pharmaceuticals and food. PET sheets are used to make food trays while PET films are used for wrapping.

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