best-known industrial and investment houses have co-operated in setting up twin factories at the Sohar Industrial Estate in the north of the country.

Shamal Plastic Industries LLC and Gulf Acrylic Industries LLC are to be commissioned soon. The Zubair, Assarain and MHD groups along with Ominvest and Oman Arab Bank have promoted the ventures. The concept is expected to fully exploit the synergies between the two operations and result in cost efficiencies. The Shamal Plastic plant will have the capacity to manufacture 4,000 tonnes per year of rigid PVC free foam sheets while the other plant will produce about 3000 tonnes of thermoplastic sheets comprising polycarbonate, PMMA (acrylic), ABS and polystyrene sheets. The plant has the capability to produce co-extruded sheets of different polymer combinations. According to Assarain Group industry development manager Lancelot D'Souza, expectations are that production will begin in August or September.

He said discussions had begun for marketing the two companies' products in Europe and appointing agents there. "The rigid PVC foam sheet is a relatively new product, about 10 years old. In markets where it has been introduced it has done well," said D'Souza. Shamal would be only the second factory in the Gulf to make PVC foam sheets as only one other company, located in Dammam, was making them and it started production last year, he said. Gulf Acrylic Industries will be one of only a few companies in the Gulf outside Saudi Arabia to produce such material. The targeted markets are Europe, Africa and South-east Asia in addition to the Middle East.

Investment in Shamal Plastic was put at RO3.5 million while the other plant will cost RO1.5 million. Funds have been drawn from shareholders and banks including a soft loan of RO260,000 from Oman Development Bank.

"Our aim is to become big players in the plastic sheet market. It will be possible to compete in Europe because of the high overheads there," said D'Souza. "South-east Asia is also a promising market." He observed that China was into large-scale production of PVC foam sheets and that it had been successful in adapting them for various applications. PVC, polycarbonate, PMMA and other raw material will be imported from global majors. Availability of raw material and other speciality additives is comfortable.

Rigid PVC foam, a wood substitute that can be easily worked with conventional carpentry tools and fasteners, is water and termite proof, non-fading, non-discolouring and has good dimensional stability. Two types of PVC foam sheets will be manufactured by Shamal Plastic Industries - free foam and the co-extruded. The free foam has a light yet strong homogeneous body. In the co-extruded sheets, the free foam layer has a harder 'skin' of PVC. Free foam sheets are used where the surface hardness is not important such as in sign bards, backing for wall cabinets and partitions. Co-extruded sheets find applications in such areas as table tops, doors, cabinets and garden furniture.