Oman cement JV to study feasibility of Duqm plant

Oman Cement Company and Raysut Cement Company have reportedly established Al Wusta Cement to explore the prospects of establishing a cement facility in Duqm SEZ

Omani cement firms have set up a JV to explore the prospects of a Duqm SEZ plant [representational image].
Omani cement firms have set up a JV to explore the prospects of a Duqm SEZ plant [representational image].

Muscat-based Oman Cement Company and Salalah-based Raysut Cement Company have set up a joint venture (JV) to study the prospects for a project in Duqm.

The JV, Al Wusta Cement, will explore the prospects of setting up a large cement plant in the Duqm Special Economic Zone (SEZ).

Consultants appointed by both partners have submitted a draft each of their feasibility study about the project, according to a report by the Oman Daily Observer, cited by Trade Arabia.

Al Wusta will look to meeting the infrastructure requirements of investors setting up operations in Duqm, and also target export markets in the Middle East, East Africa, and the Indian sub-continent.

The joint venture is seeks to partially offset a widening deficit in domestic capacity, which currently leaves the sultanate dependent on imports for 54% of its cement needs, according to the report.

Tanfeedh, the National Programme for Enhancing Economic Diversification, is supporting the establishment of a cement manufacturing hub in Duqm to plug this shortfall through investments in three new cement plants in the SEZ.

Tanfeedh’s proposals call for the development of two cement plants each of a capacity 3 million tonnes per annum, and a white cement plant with initial capacity of 300,000 tonnes per annum, dedicated primarily to exports.

Cement grinding plants in Duqm and Sohar have also been proposed, the report added.

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