Muscat – Minerals Development Oman (MDO), the flagship company of Oman’s mining and mineral processing industry, has established a strategic partnership with Synergies Casting Oman to acquire 14.8 per cent stake in the company’s shares.
Synergies Casting Oman was established in 2017 as joint venture between Synergies Castings India and Omani investors to produce aluminium alloy car wheels for automotive industry.
Synergies Casting Oman is planning to operate an alloy wheel manufacturing plant in Suhar Industrial Estate. The manufacturing plant, which is currently under construction, is expected to start commercial operations in the first quarter of 2022.
The RO42mn project is expected to produce 1.2mn tonnes of alloy wheels, being the first plant in Oman that makes high-end aluminium alloy wheels for automobiles industry.
The project’s shareholders also include Oman Development Fund, Synergies Castings India, Sultan Special Force Pension Fund, Al Jeel Al Saeid for Business and Sohar International Bank.
As per the terms of shareholding agreement, MDO has hired 100 Omanis in a number of technical and administrative jobs within Synergies Casting Oman, increasing the Omanisation rate up to 58 per cent. Synergies Casting Oman is targeting even higher Omanization rates that is planned to be achieved in the future.
Eng Nasser Saif al Maqbali, CEO of MDO, said, “This is an important milestone that MDO is closing the year 2021 with recruiting Omani talent. Boosting Omanization rates in Synergies Casting Oman is an achievement that we are proud of. This project is an essential element within MDO’s vision to promote Oman’s mining sector.”
Eng Ahmed al Mazrouei, executive director of Synergies Casting Oman, said, “We are pleased to welcome MDO as a partner in this leading project as it represents a valuable addition to our expansion plans.”
Globally, alloy wheels’ demand is estimated to increase from 219mn wheels in 2015 to 296mn wheels in 2023, and then to 326mn wheels in 2028.
Established in 2016 with a capital of RO100mn, MDO is as a partnership between Oman Investment Authority (OIA) and Oman National Investment Development Company (Tanmia).