Oman Cement has outlined plans to raise the capacity and overall efficiency of its complex at Misfah in Muscat Governorate through a number of modernization and decarbonization initiatives.
Majority-owned by Hong Kong-based Huaxin International Holdings Limited through its wholly-owned subsidiary, the Mauritius-based Abra Holdings Limited, publicly-listed Oman Cement reported a net profit after tax of RO 7.355 million for the nine months ended September 30, 2023, which was 58.26 per cent higher than net earnings of RO 4.638 million for the corresponding period of 2022.
“The company has continued its efforts to overcome the adverse impact of rise in prices of some major elements of cost, and extensive efforts have been made in this direction in the current period also with better cost management and sustained efforts to improve productivity,” said Li Yeqing, Chairman of the Board of Directors, Oman Cement.
Writing in the latest Directors’ Report, Yeqing noted that the industry continues to be buffeted by fierce market competition, particularly from players in the neighbourhood.
“Cement market in Oman has continued to witness intense price competition plus supply chain constraints between major suppliers, which include local cement companies as well as cement manufacturers from neighboring countries. The company has continued with its dynamic pricing policy and adjusted the pricing responsive to the market. The company continues to innovate varieties of product during the period coupled with its high emphasis on quality and cost reduction while maintaining highest quality standards. Market demand in rest of year 2023 is expected to be stable,” he stated.
As part of its ongoing modernization and capacity expansion efforts, Oman Cement is proceeding with the planned upgrade of the capacity of Line 3 of its existing plant. The debottlenecking and enhancement project will lift the clinker production of Line 3 from 4,000 tonnes per day (tpd) to 6,000 tpd, while also boosting clinker quality, according to the CEO.
Additionally, the company has decided to install a new cement mill (CM 6) with a packing and truck loading facility to meet increased cement demand. Also approved for implementation is a fly-ash storage and handling system designed to support the production of fly-ash oil well cement, as well as improve dust emission reduction.
However, plans for the establishment of a 5,000 tpd-capacity cement plant at the Special Economic Zone in Duqm are “under consideration”, the Chairman said.
The proposed project, dubbed ‘Al Sahawa’ has “encountered issues in supply of gas”, according to the company. “The matter is under discussion with the Public Authority for Special Economic Zones and Free Zones (OPAZ) formerly known as Al Duqm Special Economic Zone Authority (SEZAD), for exploring alternatives such as re-location of the plant site to reduce distance of gas pipeline and other matters,” it further noted.
Oman Cement currently has a capacity to produce 3.6 million tonnes of cement annually.
