The present invention relates to a process for the production of polyhydroxyoctanoate, said method involving construction of a multifunctional Escherichia coli—Streptomyces conjugative shuttle vector, development of a recombinant vector designated as pCAB218, which is used to transform Streptomyces lividans TK64, such that it is capable of producing polyhydroxyoctanoate (PHO) in substantial amounts when grown in a conventional mineral medium.