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FINANCIAL NEWS
Oman- Salalah Mills plans $19m expansion
24 Aug 2010
(MENAFN) The General Manager of Salalah Mills said that the company is planning to expand the company�s installed capacity by 600 tons per day (tpa), which will take the total flour capacity to 1,500 tpa by the first quarter of 2012, ONA reported.
The official, who is also a member of the board of Salalah Macaroni, said that the expansion project include increasing storage capacity for both wheat and flour. The capital expenditure of the project is estimated at $19 million.
He added that his company will sign contract to supply the new line with an international firm by next month and the operation is expected to commence in the first quarter of 2012.
The financing for the expansion of the project, from the supplier shall cover part of the cost of the production line. The board will consider raising capital through the issuance of preference to the right of shareholders at the beginning of next year to partly fund project. The remaining part of the cost will be by way of self-financing.
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