Dhofar Fisheries & Food Industries Company is planning to set up a fish processing plant in the Special Economic Zone in Duqm (SEZAD).
The upcoming project, which will include a full-fledged factory and a sardine cannery, is expected to start operations by 2022, Dhofar Fisheries said in its yearly financial report submitted to the Muscat Securities Market.
‘This factory is being set up near to the coastal area for the utilisation of abundant supply of sardine. Incidentally, Oman’s sardine resource is the third largest in the world,’ Dhofar Fisheries said.
The company said its new factory, being located in the Special Economic Zone in Duqm, will have many advantages that would significantly reduce the company’s operating costs. It added that the construction work related to the new company in Duqm has already started.
Dhofar Fisheries said it intends to exploit Oman’s strategic location to develop new products. The firm said it has potential to become an important vehicle to facilitate the conversion of local marine resources into valued added products for exports.
‘The management has looked for a business model that includes a wider portfolio of products rather than depending solely on tuna canning which is a highly competitive and low margin large volume business,’ it added.
Dhofar Fisheries achieved a turnover of RO8.746mn for the year ended December 31, 2020, a 10 per cent increase compared to RO7.929mn turnover recorded in 2019. However, Dhofar Fisheries incurred a net loss of RO1.227mn for the year 2020. As of December 31, 2020, the company has recorded accumulated losses of RO8.078mn.
‘The major shareholders will lift up the company’s performance and drive its success and achievements of its goals by maximising the utilisation of the existing production facilities,’ the company said.
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