Indian and Omani investors will set up a major joint venture project aimed at producing 30,000 tonnes of Sebacic acid per annum in Oman’s Duqm free zone, which will be commissioned by the end of 2017, said a report.
The state-of-the-art export-oriented project will have a capital expenditure of $62.7 million, added the report.
The company plans to float an initial public offering towards the end of 2019, it said.
Pradeepkumar Nair, CEO of Sebacic Oman, said that 40 per cent of the construction work for the plant in Duqm has been completed, and it will be a 100 per cent export-oriented unit.
He also added that the company will offer 40 per cent of its equity capital to the investing public through an initial public issue on the Muscat Securities Market.
The company recently received an approval from the bourse authorities to list its shares in the third market, which is for closely held companies.
Additionally, the CEO also noted that the entire production will be exported to the US, Europe, Japan and China.
He added that this is the first project to manufacture Sebacic acid in the entire Middle East and North Africa (Mena) region.
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).