Oil and Gas - - CONTENT -

So­har Alu­minium has part­nered with their lat­est down­stream cus­tomer, Syn­er­gies Cast­ings Ltd, the lead­ing man­u­fac­turer of alu­minium al­loy wheels in In­dia. The agree­ment will be­gin with the con­struc­tion of a $100-mil­lion hitech al­loy wheel man­u­fac­tur­ing plant in the So­har In­dus­trial Es­tate ad­ja­cent to So­har Alu­minium premises.

Con­struc­tion is sched­uled to be­gin in the com­ing months with pro­duc­tion ex­pected to com­mence in 2020.

Eng Said al Ma­soudi, So­har Alu­minium’s Chief Ex­ec­u­tive Of­fi­cer, said, “A cen­tral com­po­nent of So­har Alu­minium’s strat­egy is to pro­mote and sup­port the growth of down­stream alu­minium in­dus­tries within the Sul­tanate. With this agree­ment in place, we will meet our goal of sup­ply­ing 60 per cent of our hot me­tal pro­duc­tion to down­stream part­ners.

We are of­fer­ing them prox­im­ity to raw ma­te­ri­als, a sig­nif­i­cant value propo­si­tion that pro­vides our down­stream cus­tomers with a dis­tinct en­ergy cost ad­van­tage. This ini­tia­tive is also in sync with our in­tent to build ben­e­fi­cial re­la­tion­ships with lo­cal sup­pli­ers as well as cus­tomers from Oman and abroad in or­der to de­liver sus­tain­able In-Coun­try Value (ICV) for Oman.”

At full ca­pac­ity, So­har Alu­minium will sup­ply more than 24,000 tonnes of alu­minium per year which will be used to pro­duce high-end alu­minium al­loy wheels for au­to­mo­biles. The wheels will be sup­plied di­rectly to au­to­mo­bile man­u­fac­tur­ers around the world. In line with the Tan­feedh pro­gramme, the new Syn­er­gies plant will con­trib­ute to Oman’s eco­nomic growth and cre­ate new forms of em­ploy­ment for high skilled tal­ent.

Once fully op­er­a­tional, the plant will pro­duce around two and a half mil­lion wheels an­nu­ally with an es­ti­mated 500 di­rect jobs cre­ated.

The al­loy wheel seg­ment is es­ti­mated to hold the largest share in the global alu­minium down­stream us­age mar­ket. In 2017, the au­to­mo­tive wheel mar­ket was worth an es­ti­mated $32 bil­lion and is pro­jected to reach $50 bil­lion by 2025.

With in­creas­ing in­ter­na­tional de­mand for al­loy wheels, this project will fur­ther de­velop the man­u­fac­tur­ing in­dus­try in the Sul­tanate of Oman.

Khalid al Kimyani, Chair­man of Syn­er­gies Cast­ings, said, “Oman’s abun­dant re­sources com­bined with its grow­ing econ­omy and in­fra­struc­ture make it an ideal win-win agree­ment. With So­har Alu­minium as a sup­plier, our ex­pan­sion in this re­gion will fur­ther help us de­liver qual­ity around the world.”

Syn­er­gies Cast­ings Ltd is In­dia’s lead­ing non-fer­rous com­po­nent com­pany, man­u­fac­tur­ing four-wheeler al­loy wheels, alu­minium cast­ings and plas­tic com­po­nents.

As one of the global lead­ers in the man­u­fac­tur­ing of chrome-plated wheels up to 24’ in di­am­e­ter, Syn­er­gies Cast­ings sup­plies al­loy wheels to most in­ter­na­tional au­to­mo­bile mak­ers in­clud­ing Gen­eral Mo­tors, Ford, Chrysler, Honda, Toy­ota, Tata Mo­tors, Mahin­dra and Fiat.

So­har Alu­minium was formed in Septem­ber 2004 to un­der­take a land­mark Green­field alu­minium smelter project in the Sul­tanate of Oman. It is jointly owned by Oman Oil Com­pany, Abu Dhabi Na­tional En­ergy Com­pany PJSC — TAQA and Rio Tinto.

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