The construction work on US$500mn iron manufacturing facility began on Wednesday in the presence of senior government officials at Salalah Free Zone (SFZ).
In a tweet posted on his official twitter handle, Ali Tabouk, chief executive officer at Salalah Free Zone, said, ‘The construction work on 250,000 sq m manufacturing facility by National Steel Company starts today.”
Saudi Arabia’s National Steel Company in September last year signed an agreement with Salalah Free Zone to establish Oman’s largest iron industries complex with an estimated investment of US$500mn.
In his tweets, Tabouk said that the proposed plant will have the capacity to produce 85,000 tonnes of various iron products annually. A majority of the manufactured products from National Steel Company’s facility (around 65 per cent) would be exported to the regional markets.
The factory will produce around 25,000 tonnes of steel structure and 60,000 tonnes of prefabricated building per year.
Besides this, the factory will also have the capacity to produce sandwich panels for industrial buildings and iron-based industrial floors in varying quantities.
Explaining the likely contribution of the proposed plant, Tabouk said once completed, the facility will provide 500 direct employment opportunities. This will help local companies to save around 30 per cent of cost by providing high quality products at a short notice without worrying about logistics costs.