FINANCIAL NEWS

USD400m steel plant to be built in Oman

05 Sep 2012

(MENAFN) A group of GCC investors announced that they have established a USD400 million joint venture in Oman specialized in steel production, Reuters reported.

The new venture, Dhofar Steel, is located in the southern city of Salalah and is poised to have an output capacity of 1 million tons per annum.

The joint venture was formed by Oman’s Salalah Development Company, the Al Suwaidi Group of the UAE and Saudi Arabia’s Al Tuwairqi Group.

In their statement, they said the steel company would create job opportunities for over 1,000 Omanis.

The venture will be Oman’s second steel company, after a pelletising plant operated by Brazil’s Vale in the northern industrial city of Sohar.

Demand for steel in Oman is growing for oil industry and infrastructure projects. Furthermore, the Sultanate is planning to build a 1,000 km railway at an estimated cost of around USD13 billion, scheduled for completion in 2018.

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