Sohar Flour’s OMR15m project to start operation next year
MUSCAT: Sohar Flour Mills is expected to commission its new mill by the second quarter of 2018.
The construction work on the project, which will have a capital expenditure of OMR15 million, is progressing well, according to Oman Flour Mills.
Sohar Flour Mills is a partnership between Atyab Investments, a wholly-owned subsidiary of Oman Flour Mills, and Essa Al Ghurair Investments, based in the United Arab Emirates (UAE).
A strategic vision
With a strategic vision to expand its production coverage to different regions of Oman, Sohar Flour Mills is using state-of-the-art flour milling technology. In its first phase, it will have a wheat milling capacity of 550 metric tonnes per day with a potential to expand to 2,000 metric tonnes per day in later phases.
The flour mill, which is coming up adjacent to the silos proposed to be built by the government om Sohar, will also be capable of producing all types of specialty flours to cater to the different regions of Oman, as well as develop exports to the Gulf Cooperation Council (GCC) states and other international markets. The project is expected to create more than 100 employment opportunities for Omani nationals.
Diversification plans
As part of Oman Flour Mills’ diversification plans and the government’s emphasis on food security, Atyab Investments was established in 2009 to unite the common objectives of its subsidiaries and provide strength and stability to manage and synergise operations, goals and policies.
Meanwhile, the Oman Flour Mills Company and its subsidiaries achieved a 5.9 per cent growth in sales volume for the first nine months ending March 2017, over the same period in the previous year. The group’s net profit for the nine months was OMR12.14 million, up from OMR8.92 million a year ago.
“The increase in profit is mainly in the parent company due to higher sales, and lower cost of material due to a drop in commodities’ prices,” Oman Flour Mills said in its third quarter results.
It also reported a net profit of OMR10.55 million, compared with OMR7.41 million in the previous period.
Among the subsidiaries, Modern Poultry Farms (MPF) earned profit before tax of OMR460,000, compared with the previous period profit of about OMR448,000. MPF’s production increased by about 21 per cent, compared with the same period in the previous year. Another associate firm—Sohar Poultry Co (SPC)—achieved a profit before tax of OMR313,000 (against OMR323,000 in the previous period). Production was higher and mortality was lower. However, due to a drop in selling prices, profitability was lower.