(MENAFN- Muscat Daily) Muscat- Octal on Monday announced that it will invest a minimum of US$50mn this year in its PET sheet business in Oman.

The investment will largely be in PET sheet capacity expansion to improve existing machinery, increase operational efficiencies and generate cost savings, Octal said in a press statement.

Octal, the Salalah-based world's leading clear rigid packaging material supplier, recorded consistent growth in 2018 and has now entered its fourth development phase. The company outlined its successes during a meeting for bankers and lenders.

Nicholas Barakat, chief executive officer of Octal said, 'Despite a challenging year, we had a profitable 12 months, which is a testament to our unique product and efficient operations. Our investment going forward is driven by customers' need for a superior product that meets their packaging and environmental requirements.'

He said Octal is making strong inroads to new international sheet markets in South America and has increased capacity in its Cincinnati, US plant to 40,000 tonnes.

'This is a true reflection of a global leader in PET packaging. Our continued growth is the result of massive investment and research into the most advanced innovative technologies. By adopting the latest production methods, we have continuously extended our global reach and developed new products that assist customers in displaying their goods using our expanded range of PET packaging solutions,' Barakat added.

Octal is looking at diversifying its presence globally, especially with Asian and Latin American markets booming with the demand for packaging solutions for the food and beverage industry. It is also eyeing expansion into Europe and the US with its highly sought after recycled content PET range.

Between 2016 and 2018, Octal witnessed a strong financial performance: Volumes were up by ten per cent and revenues were up by 24 per cent, with 2019 promising to continue delivering favourably.

Scott Ewen, chief financial officer of Octal, said, 'Cost control and cost reduction initiatives have been fundamental in ensuring financial sustainability over the long term. We have maintained a steady focus on investment in capacity, proprietary technology and innovation, enabling us to accomplish sales growth year-after-year.'

Octal said the upswing in its PET sheet business has been driven by increased volumes, firstly by operational efficiency then by capacity.

On the other hand, the growth in the company's PET resin business has been attributed to a change in approach with a focus on pricing structure and profitable sales rather than volumes.

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