$435m cement project in Oman set to attract GCC investors
dubai — Construction work is set to begin on Oman’s largest integrated cement manufacturing facility with an investment of $435 million in the Special Economic Zone (SEZ) at Duqm.
Duqm Cement Projects International (DCPI) is developing the mega project plant with a capacity of 3.50 million tonnes per annum.
Seven Seas Company, the lead promoter of the project, said it is in the advanced stages of tying up with strategic GCC investors and in achieving financial closure by the end of 2020.
“The economies of scales resulting from the envisaged capacity of 10,000 tonnes per day coupled with the latest technology would help us in achieving our aim of becoming one of the most efficient cement producers in the region,” said DCPI in a Press statement.
The project, which is expected to give impetus to the development of downstream industries, also seeks to contribute to the national objective of making Oman a hub for industrial excellence in the region by virtue of its abundant mineral resources, additives, world class ports, efficient economic zones and strategic location, said the statement.
Seven Seas also announced the release of the EPC tender to world’s leading equipment suppliers. The Usufruct Agreement has been signed with SEZ. The results of prospecting for a quarry with limestone reserves allotted adjacent to the cement plant have been very encouraging. All the utility requirements for the project like power and water have been allotted and the environmental clearance for the plant and the quarry obtained, the company stated.
The project will conform to the latest and advanced specifications of environmental standards and is expected to be operational by the first quarter of 2023. This new plant will help to meet local demand as well cater to the overseas markets of India, Sri Lanka and East Africa.
To cater to the export demand, the promoters are planning to
install an additional clinkerisation unit once the operations are stabilised.
Currently raw limestone is imported by India due to a shortage of limestone in the subcontinent. The project expects to bridge this gap by providing a value added clinker, the company said.
“This project will substantially contribute to the twin national objectives of diversifying the economy and productively employing nationals. It is also expected to stimulate a series of downstream opportunities in the building materials sector. It will substantially add value to local resources which are otherwise exported in raw form. The project is also expected to generate 340 direct and 1,000 indirect employment opportunities. A sizeable part of this will be nationals,” said the statement.