Land lease agreement for OMR225m-cement project in Duqm signed

Muscat: A land lease agreement for building a large cement plant in Duqm with a capital expenditure of OMR225 million was signed by the Special Economic Zone Authority of Duqm (Sezad) with Al Wusta Cement Company LLC.
Al Wusta Cement Company LLC is promoted by Raysut Cement Company and Oman Cement Company.
According to a feasibility study conducted by Al Wusta Cement, there are two options for installed capacity – either 5,000 tonnes per day or 10,000 tonnes per day. The first option for 5,000 tonnes per day will provide 389 jobs while the second option will create 408 employment opportunities.
As per the terms of the land lease agreement, Al Wusta Cement Company LLC has received the right for 500,000 square meters of land within the industrial area in Duqm for 50 years to set up the project. The land lease agreement is renewable.
Al Wusta Cement Company said that the construction work for the project will start in 2018, while the actual production is expected in 2020.
The total expenditure will be met by way of term loan from financial institutions and equity capital brought in by the promoters.
The company’s production will meet the demand for cement in the country, especially from Al Wusta region. Plans are also afoot to export excess production to other GCC countries.
The agreement was signed by Yahya bin Said bin Abdullah Al Jabri, Chairman of Sezad, and Abdullah bin Abbas bin Ahmed, Chairman of Oman Cement Company and Ahmed bin Yousuf bin Alawi, Chairman of Raysut Cement Company.
Al Wusta Cement Company LLC is the latest investment in Duqum Special Economic Zone.
The company expects the new project to provide several business opportunities for small and medium enterprises, which include transport services and for providing raw materials from quarries to the plant. It will also activate the movement of companies operating in the field of loading, unloading, packaging, and storage.
Al Wusta Cement Company is the third cement firm in the Sultanate after Raysut Cement Company and Oman Cement Company. Oman Cement Company has an installed capacity to produce 2.3 million tonnes of cement, while Raysut Cement Company’s combined capacity is around 3.7 million tonnes of cement – 2.3 million tonnes plant in Salalah and 1.4 million tonnes in Ras Al Khaima.