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Sohar Aluminium mulls expansion plan

November 2017

Oman's Sohar Aluminium has revealed that its board is studying expansion plans with the aim of increasing capacity in line with Tanfeedh’s recommendations along with a strategy to grow downstream aluminium sector in the sultanate, said a report.

Oman’s National Plan for Economic Diversification (Tanfeedh) recommended a multimillion rial investment to increase the current production capacity of Sohar Aluminium that can establish more industrial activities while creating additional jobs in the capital-intensive industry, added the Times of Oman report.

Said Mohammed Al Masoudi, CEO of Sohar Aluminum, said that the company is proposing to expand its plant but this will require shareholder appetite to invest.

He revealed that it is under discussion in Tanfeedh as well, and they are always hoping to expand, because the plant itself was designed from day one to have more than one potline.

He further added that their first potline was a greenfield project. The brownfield is less of a challenge but is a capital-intensive project that requires billions of dollars in investment, which once completed will benefit Oman.

Sohar Aluminum currently produces 375,000 tonnes of primary aluminum annually. Nearly 60 per cent of this is used for supply to the local market while 40 per cent is exported in accordance to the agreement with Rio Tinto.

Al Masoudi said that industrial policies and expansion of plant can help the local downstream sector.

 




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