Minerals Development Oman acquires 14.8% of Synergies Casting Oman

Business Tuesday 28/December/2021 15:18 PM
Minerals Development Oman acquires 14.8% of Synergies Casting Oman

Muscat: Minerals Development Oman (MDO) has recently established a strategic partnership with Synergies Casting Oman (SCO) to acquire 14.8 per cent of the company's shares that plans to operate an alloy wheel manufacturing plant in Sohar Industrial Estate, which is expected to start commercial operation in Q1 2022.

The OMR42 million project is expected to produce 1.2 million tonnes of alloy wheels, being the first plant in Oman that makes high-end aluminium alloy wheels for automobiles.

The project's shareholders also include Oman Development Fund, Synergies Casting India, Sultan Special Force Pension Fund, Al Jeel Al Saeid for Business and Sohar International Bank.

As per the terms of the shareholding agreement, MDO hired 100 Omanis in a number of technical and administrative jobs within SCO, increasing the Omanisation rate up to 58 per cent. SOC is targeting even higher Omanisation rates that are planned to be achieved in the future.

MDO’s CEO, Eng. Nasser Saif Al Maqbali said, "This is an important milestone that MDO is closing the year 2021 with recruiting Omani talent. Boosting the Omanisation rates in SCO is an achievement that we are proud of. This project is an essential element within MDO vision to promote the Omani mining sector.”

On his turn, Eng. Ahmed Al Mazrouei, Executive Director of SCO, said, "We are pleased to welcome MDO as a partner in this leading project as it represents a valuable addition to our expansion plans."

Globally, alloy wheels’ demand is estimated to increase from 219 million wheels in 2015 to 296 million wheels in 2023, and then to 326 million wheels in 2028.