Port of Sohar will be Home to Oman’s First Sugar Refinery
Oman Sugar Refinery Co LLC (OSRC), a recently launched special purpose vehicle company, will build the country's first sugar refinery at the Port of Sohar by means of an investment of US$200mn.
April 15, 2013
The construction of the sultanate’s first oil refinery will consist of two stages and the refinery will be equipped to manufacture 1mn tonnes of refined sugar every year. At a ceremony in Grand Hyatt Muscat lat night, Sultan bin Salim al Habsi, secretary general of the Supreme Council of Planning and chairman of the board of Port of Sohar, Andre Toet, CEO of Port of Sohar, and Nasser Ali Saif al Hosni, chairman and managing director of OSRC signed the agreement for the new project.
Ashwin Rana, project director for OSRC believed that the refinery will be a world class, state-of-the-art facility employing the latest proven technology to produce the highest quality refined sugar. “The refinery will be wholly owned by Omani promoters, with Nasser Ali Saif al Hosni the main promoter. The refinery will produce Omani branded products for local, regional and international markets. We are contemplating the GCC markets and other countries in the MENA region for exports,” he added.
Rana also said that “it is a fairly fast-track project with full production expected by the beginning of 2016. We expect to hire 500 employees for the refinery and we expect Omanisation to climb to 80-90 per cent within ten years.”
Opening of the new refinery will ensure a reduction in sugar prices which are higher in Oman compared to other countries in the region. Construction of the sugar refinery will begin in the third quarter of 2013 and completed in 2015. The project is funded by a arrangement of equity and debt. Civil and construction work tenders will be issued from June onwards.
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