Oman Daily Observer

Chinese SUV maker plans auto plant in Oman

- CONRAD PRABHU MUSCAT, AUG 1

Chinese specialist automaker Wuhan Xiaolong Automotive Technology Co Ltd says it is making headway in the establishm­ent of a major plant at the Special Economic Zone (SEZ) at Duqm dedicated to the manufactur­e of high-mobility SUVs for civilian and military use.

The estimated $84 million project is presently in the early phases of developmen­t at a site allocated with the China-Oman Industrial Park which was formally inaugurate­d at the SEZ in April this year.

The company’s general manager, Ou Guosheng, said the project is currently in the design phase. He told the Duqm Economist, the newsletter of the Duqm SEZ Authority (SEZAD), that the promoters have already met two key milestones in the developmen­t of the project: firstly, the completion of the soil and geographic­al investigat­ions covering the site, and secondly, the signing of the partnershi­p agreement with Oman Wan Fang LLC — the Chinese-led developer of the China-Oman Industrial Park.

The plant is presently being designed to suit the project’s specs, the newsletter quoted Guosheng as stating.

The SUV manufactur­ing plant was among 10 projects that were unveiled on April 19, 2017 as part of an initial portfolio of Chinese industrial investment­s firmed up for implementa­tion at the China-Oman Industrial Park in Duqm.

Wuhan Xiaolong Automotive Technology Co Ltd, one of the 10 investors, is a vehicle manufactur­er based in Wuhan City in China’s Hubei Province.

The company manufactur­es a wide array of automotive products under the ‘Xiaolong’ label.

The list includes off-road communicat­ions command vehicles, road testing vehicles, energy saving test vehicles, special purpose vehicles, police vehicles and special transport vehicles.

The proposed facility in Duqm will target an output of 10,000 highmobili­ty SUVs per annum, of which 9,000 units will be for civilian use, and the remaining 1,000 for mili- tary purposes. Envisaged in Phase 2 of the project is an ‘electromec­hanical industrial hub’ that will provide industrial support for large automotive ventures, the general manager said.

Target export markets, Guosheng added, include countries in the Middle East, Africa, South America and Asia, besides police establishm­ents and the armed forces of China.

Investment­s totalling in excess of $3 billion were pledged at the formal establishm­ent of the China-Oman Industrial Park last April. Oman Wanfang LLC, representi­ng a consortium of six corporatio­ns from China’s Ningxia Province, is the main developer of the sprawling 1,172-hectare park at the SEZ.

They include a mega methanol and methanol-to-olefins (MTO) scheme, major power plant, world-scale solar equipment manufactur­ing facility, oilfield goods and pipeline plants, and a sprawling hospitalit­y venture.

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