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Tue 4 Sep 2012 04:51 PM

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Gulf venture to build $400m Oman steel plant

Three Gulf investors have formed a joint venture to build a plant in Salalah

Gulf venture to build $400m Oman steel plant

Three Gulf investors have formed a joint venture to build a US$40m steel plant in the southern Oman city of Salalah, a statement by the company said on Tuesday.

Dhofar Steel has been formed by a joint venture of Oman's Salalah Development Company, the Al Suwaidi Group of the UAE and Saudi Arabia's Al Tuwairqi Group to produce 1m tonnes of steel annually, the statement said.

It said the company would create job opportunities for over 1,000 Omanis, but made no mention of when construction would take place and did not give other details. The Al Tuwairqi Group operates steel product plants in Saudi Arabia.

The venture will be Oman's second steel company, after a pelletising plant operated by Brazil's Vale in the northern industrial city of Sohar.

Demand for steel in Oman is growing for oil industry and infrastructure projects. The country currently produces an average 902,000 bpd of oil; its oil and gas minister said last year that it was aiming for production of 1m bpd in the next three years.

Oman plans to build a 1,000 km railway at an estimated cost of around OMR5bn (US$13bn), with completion in 2018.

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