Sunday, September 26
03:53 PM

Oman Cement receives bids for $250mn project

13 Mar 2021

Oman Cement Company, which is currently focusing on expanding its production capacity and increasing efficiency, has received commercial bids from engineering, procurement and construction (EPC) contractors for its proposed integrated cement plant in Duqm.

‘The company has decided to expand its operations by setting up a new integrated cement plant in Duqm area. The plant will have a capacity of producing 5,000 tonnes per day of clinker and envisages an estimated investment of about US$250mn,’ Oman Cement said in its financial report submitted to the Muscat Securities Market.

The company said that the project consultant for upcoming Duqm project has been appointed, adding, ‘Offers from the EPC bidders have been received and after initial valuation the deviations in the commercial offers are yet to be updated and submitted by the EPC bidders.’

As part of the company’s strategy to boost its operational efficiencies, Oman Cement is also planning to set up a new power plant and the tender in this regard has been floated to appoint an EPC contractor.

‘A decision has been taken to install a new power plant with the latest technology. Offers from EPC contractors have been received and the evaluation is completed. The installation of WHR (waste heat recovery unit) on existing gas turbine unit is under tender preparation,’ Oman Cement said in its report.

As per the company’s report, Oman Cement is also planning to utilise waste tyre as an alternate fuel and the company has carried out a feasibility study and appointed a project consultant to execute the project. ‘The company has floated tenders for appointment of an EPC contractor. Offers from EPC contractors have been received and the evaluation is completed. Negotiation with bidders is under progress.’

For the financial year ended December 31, 2020, Oman Cement reported a net profit of RO5.183mn compared with RO4.013mn net profit reported in the previous year, recording an increase of 29 per cent. The company’s sales turnover increased by 4.2 per cent to RO50.144mn for 2020 against RO48.129mn in the previous year.

© 2021 Apex Press and Publishing. All Rights Reserved.