PET resin and sheet maker Octal Extrusion Corp. expects to spend at least $50 million this year to increase capacity and improve operations.
The Muscat, Oman-based company, which has a recycling plant in suburban Cincinnati, will spend the money on increasing sheet capacity as well as improving current machinery and operational efficiency.
Octal is known for its direct process that converts molten PET into sheet. The company's process eliminates the need to create pellets.
Octal does make PET resin pellets to sell to other companies and has put a focus on profitability in that segment of the market.
“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,” CEO Nicholas Barakat said about 2018 in a statement.
“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,” he continued.
“We are making strong inroads to new international sheet markets in South America and have increased capacity in our Cincinnati plant to 40,000 tons,” Barakat said. That facility is located in West Chester, Ohio.
Improvements in Octal's sheet business have come through increasing volume through both efficiency and adding capacity.
Improvements on the resin side of the business have “been attributed to a change in approach with a focus on pricing structure and profitable sales rather than volumes,” the company said. “Internal procurement and pricing strategies have been adjusted to accommodate a demand-driven model, which aims to ensure every ton sold is at a profit.”
The company has previously shared its vision for international expansion, and that's a goal that continues.
“Octal is looking at diversifying its presence globally, especially with Asian and Latin American markets booming with demand for packaging solutions for the food and beverage industry,” the company said in the statement. “It is also eyeing expansion into Europe and the U.S.” thanks to demand for recycled content PET in those markets.
Octal's PET manufacturing operations are in Salalah, Oman. The company also runs a PET packaging plant in Riyadh, Saudi Arabia.