Friday 26 / April / 2024
Muscat: A joint venture (JV) between Omani investors and an Indian entrepreneur plans to build the world’s biggest plant for Sebacic acid in the Duqm free zone.
Work on the state-of-the-art export-oriented project with a capital expenditure of $62.7 million had already started last month.
Sebacic acid, which is used for making high performance engine oil and lubricants, adhesives, engine coolants, bio-degradable packaging, sub-sea pipe/cable coatings, aerospace polymers, anti-corrosion applications and bio-plastics, is manufactured from castor oil (vegetable oil).
“The project has the capacity to produce 30,000 tonnes of Sebacic acid per annum. We have already started construction and it will take one-and-a-half years to complete the project,” Pradeepkumar B Nair, chief executive officer (CEO) of Sebacic Oman SAOC, told the Times of Oman.
“This is the first project to manufacture Sebacic acid in the entire Mena (Middle East and North Africa) region.”
The project is being promoted by Sheikh Hilal bin Khalid Al Maawali (chairman); Nair (CEO) and Sheikh Khalid bin Hilal Al Maawali (director).
Nair noted that the entire production will be exported to Europe, the United States, China and Japan.
The company has already acquired 40 hectares of land and an adjacent coastline of 640 metres.
He further said that Sebacic acid is used for producing bio-degradable packaging for replacing cancer causing plastics. “Food packages for children in the United States and Europe are being produced with bio-degradable plastics.”
Demand for Sebacic acid is growing due to a ban on plastics in packaging food products for children in several developed countries and increasing aerospace applications. The Castor oil derivatives market is worth $15 billion per annum and major demand is coming from the United States, Europe and Japan.
Sebacic acid is manufactured from castor oil, which is already grown in Oman. However, the company plans to import castor oil from India. As much as 70 per cent of world’s castor oil is produced in the Indian state of Gujarat. The castor plant grows on any soil and is found in Oman growing naturally. “We are discussing with the Ministry of Agriculture to promote contract farming in Oman. This will help Omani farmers,” noted Nair. The castor plant withstands dry seasons and heavy rains.
For the first phase of the Duqm project, the total castor seed requirement will be around 100,000 tonnes per annum.
Nair said he has a similar plant in India’s Gujarat state and his company has been exporting Sebacic acid to several countries globally.
Elaborating on the advantages of building the plant in Duqm, Nair said the tax-free incentives of the Oman government in Duqm and good port connectivity are the advantages considered before locating the project there. The proposed liquid jetty is also an advantage. “It is going to be the next trans-shipment hub for the entire Gulf region.”
