Construction has officially begun on a $550 million petrochemicals project at SOHAR Port and Freezone in Oman, aimed at producing Purified Terephthalic Acid (PTA) and Polyethylene Terephthalate (PET), key materials used extensively in the global packaging industry.

The new facility, named Sohar Petrochemicals (SOHARPET), is a joint venture between MAK Germany GmbH, a Hamburg-based firm specializing in plastics, chemicals, and machinery, and OQ Group, an Omani energy conglomerate. OQ’s Liwa Plastics Industries Complex at Sohar Port will supply paraxylene (PX), the primary raw material feedstock necessary for production.

This development follows MAK Germany’s earlier establishment of MAK Sohar Chemical Industries at Ladayn Polymer Park, a subsidiary focused on manufacturing thermoplastic elastomers and engineering compounds utilized in sectors such as automotive, medical, and packaging. The launch of SOHARPET represents a continuation of MAK Germany’s strategic expansion in the Middle East, reinforcing its ongoing commitment to Oman’s growing petrochemical sector.

The project is planned across two sites: an 11.9-hectare area within Sohar Port and a larger 53.6-hectare plot in the adjacent Sohar Freezone. This dual-location approach is intended to integrate port operations seamlessly with manufacturing activities. Additionally, assets related to PTA and PET currently based in Rotterdam will be relocated to Suhar as part of the consolidation.

Besides paraxylene, the project will import complementary raw materials such as monoethylene glycol (MEG) and acetic acid through Sohar Port. An integrated logistics system featuring pipeline connections is expected to improve supply-chain efficiency and optimize material handling.

MAK Germany emphasized that the SOHARPET initiative aligns with Oman's national objectives by converting locally available feedstock into higher-value petrochemical products within the country, thereby enhancing industrial integration and maximizing in-country value creation.

The project is also anticipated to generate employment opportunities, foster technical skill development, and cement SOHAR’s role as a regional hub for advanced manufacturing and petrochemicals. The agreements underpinning the venture were finalized in April 2026 with multiple Omani partners, including Sohar Freezone, OQ, and Ladayn.

Construction is underway as the partners work toward operationalizing the plant, which is expected to contribute significantly to Oman’s industrial diversification efforts.