The joint venture is between OOC and LG International of Korea on 80:20 per cent basis, respectively. The share of GIC will be carved out from OOC's 80 per cent ownership in the company. The addition of GIC as an investor in OPP further enhances the company's shareholding. Maqbool bin Ali Sultan, minister of commerce and industry and OOC's chairman, said GIC's investment in OPP is in line with one of OOC's objectives by facilitating foreign investment in the Sultanate. OPP was established to construct and operate a polypropylene plant in Sohar industrial area with a capacity to produce 340,000 tonnes per annum of polypropylene product. The project, which is started as part of Sohar refinery complex, aims to add value to the propylene stream to produce a product that can be used in a large array of downstream industries. On this note, Maqbool bin Ali Sultan urged the private sector to take the opportunity and start up projects that will develop by-products of polypropylene pellets such as fibres, filaments, woven tapes, injection moulding, thermoforming, blow moulded containers, transparent household and storage containers and other packaging items. Polypropylene is a product that is used on a daily basis. It is being seen in many items such as food packages, flower wrapping, furniture, bottles, just to name a few. Commenting on its investment in OPP, Hisham Al Razzuqi, chief executive officer of GIC, said: "We are very pleased to be partners with Oman Oil Company in this important project. "We are optimistic of OPP's future and we will continue to seek feasible investment opportunities that add value to Oman's economy and, thereby, enhance growth prospects." He added that the establishment of Oman Investment Company (OIC) between GIC and the Omani government is a clear indication that GIC is committed to expanding its presence in the Omani economy that has growing and rewarding opportunities. "This fits perfectly with our mandate to support the development of private enterprise and economic growth in the AGCC region," he said. Recently OPP secured a $219 million loan from local, regional and international banks at very attractive prices. The plant is being constructed on EPC basis by a consortium of LG Internation-al Cooperation and LG Engineering and Construction Corporation. The plant is expected to employ 150 people at operation. The project's total cost is around $313 million. Oman Polypropylene will market production in the Indian subcontinent, Iran, the Middle East and east and southern Africa and LG International will be the marketer in the rest of international markets. Ninety per cent of the production will be exported and the remaining 10 per cent will meet local existing and future requirements. The plant will commence commercial production in the last quarter of 2006. Oman Oil Company is a commercial company 100 per cent owned by the Omani government. The company was created in 1992 to give the government another vehicle for pursuing investment opportunities in the energy sector, both inside and outside Oman. Through participation in energy and energy related projects, OOC plays a role in the Sultanate's efforts to diversify the Omani economy and help generates Omani and foreign private sector investment. In Oman, OOC has interest in numerous projects that are either in operation, under construction or under development. These include gas transmission, petroleum retailing, refining, petrochemicals and aluminum smelting. Outside Oman, OOC has interests in exploration and production, crude oil pipelines and petroleum product logistics. LG International Corpora-tion LGI, established in 1953, is now a key member of the LG Group involved in trading and overseas investment. Its business is conducted through its subsidiaries and representative offices worldwide. The company's shares were offered to the public in 1975 and listed on the Korean Stock Exchange. Turnover for 2003 was $4.2 billion. LGI's business functions include international investment and resource development, trading, and project management/organisation which include the management and construction of major petroleum projects. Gulf Investment Corporation (GIC) was established in 1983 and is equally owned by six member states of the Arab Gulf Cooperation Council: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE. Its mission is to support regional cooperation and to stimulate private enterprise in the AGCC region. With an authorised capital base of $2.1 billion GIC's balance sheet assets stood at $6.6 billion at the end of 2003 and shareholders' equity were $1,285.9 million. PIN//ONA