Omani investors have collaborated with an Indian company in creating a joint venture (JV) to build world’s biggest Sebacic acid plant in the Duqm Free Zone
Work on the state-of-the-art export-oriented project with a capital expenditure of US$62.7mn had already started in January this year.
Sebacic acid, which is used for making high performance engine oil and lubricants, adhesives, engine coolants, bio-degradable packaging, subsea pipe/cable coatings, aerospace polymers, anti-corrosion applications and bio-plastics, is manufactured from castor oil (vegetable oil). Castor oil 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.
“We are discussing with Oman’s Ministry of Agriculture to promote contract farming in Oman. This will help Omani farmers,” revealed Nair.
Pradeepkumar B Nair, CEO of Sebacic Oman SAOC, told the Times of Oman, “The project has the capacity to produce 30,000 tonnes of Sebacic acid per annum. We have already started construction and it will take 18 months to complete the project.
“This is the first project to manufacture Sebacic acid in the MENA region.”
Nair noted that the entire production will be exported to Europe, the USA, China and Japan.
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 Gulf region.”
The company has already acquired 40 hectares of land and an adjacent coastline of 640 metres.
Sebacic acid is used for producing bio-degradable packaging for replacing cancer causing plastics. The 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.
For the first phase of the Duqm project, the total castor seed requirement will be around 100,000 tonnes per annum.
