Chicago-based building materials maker USG will invest US$60m in Oman over the next two years as part of a partnership with the Zawawi Group, the firm has said.
USG will acquire a 55 percent stake in an Omani gypsum quarry and form a 50-50 joint venture with the Oman-based firm to build a “low cost” wallboard plant in the Gulf state, the firm said in a statement.
The partnership with the Zawawi Group will enable USG to capitalise on growing demand for building materials products in the Middle East and India, the statement added.
“We believe that we can enhance our success in India by securing the strategic gypsum rock source in Oman, and cost-effectively shipping products to India, thereby accelerating USG wallboard penetration in the region,” said Chris Griffin, executive vice president, operations for USG.
The quarry venture will develop infrastructure, with mining operations slated to start in the third quarter of 2013. The second phase will be a manufacturing joint venture to build and operate a new wallboard plant close to the quarry with plans to begin production in the fourth quarter of 2013.
USG shares increased 3.8 percent in afternoon trading on Monday.
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