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India’s Zoom Group is developing a $665m capacity steel plant in Sur, Oman’s easternmost city, 150km southeast of capital Muscat.
The plant will have two production lines each producing 600,000 tonnes of steel billets and blooms. Billets are used to produce bar stock, including rebar for concrete structures, and wire while blooms can be used to produce rails, rods and seamless pipes as well as structural shapes.
The project will use imported iron, and the total plant cost of $665m includes $85m in working capital. Plant officials say the products will be used both locally and internationally.
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Speaking to the Times of Oman, Syed Gazanfar Abbas Safvi, Director and Chief Executive Officer of ZSC said Sur’s location made it a perfect choice for the plant.
“A steel plant of this magnitude needs to be located close to the shore to bring down transportation cost. Our project is only three kilometres away from the shore and we are planning to develop our own jetty. We can become a global player,” he said.
Atkins has completed a feasibility study for the venture and Safvi said that half the plant equipment has arrived on site, while the rest has been ordered.
The new plant should be operational by the end of 2012, and the current site provides for future expansion.
The news of the development comes just days after Oman announced closer industrial ties with India with a $100m fund designed to increase trade and fuel construction projects between the two countries.
Oman is keen to diversify its interests from an economy that relies on the oil and gas industry, transforming it in to a modern, industrialised nation, while India needs to develop its infrastructure and industry to support its growth path, Indian ambassador to Oman, has said.
Steel prices in Oman have also rebounded after a four month period of decline.
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FEATURED COMMENT
It's is really an economically rewarding venture (turn key project) in Sur, Oman. Definitely it will be a success.