Muscat – Omani cement producers and the Ministry of Commerce, Industry and Investment Promotion (MoCIIP) have announced measures to optimise production and supply chain to help address cement shortages in the sultanate.

MoCIIP on Tuesday held a joint meeting with departments concerned and related companies to discuss cement shortages in some governorates of Oman. The meeting reaffirmed that the public-private partnership is the basis of integrative action. It also stressed that opening direct channels of dialogue will contribute in understanding the needs of the market and the challenges facing Omani cement factories.

As per an Oman News Agency report, one of the local cement factories suspended its production due to increased costs of raw materials used in the production process. Accordingly, Oman Cement Company announced its readiness to boost its production capacity by 10 per cent to meet the local demand.

The meeting was headed by H E Qais Mohammed al Yousef, Minister of Commerce, Industry and Investment Promotion. Present during the meeting were Dr Saleh Said Masan, Undersecretary for Commerce and Industry at MOCIIP, officials and CEOs of Omani cement factories, as well as representatives of cement importing companies and distribution firms.

Masan affirmed that the meeting resulted in taking several measures to ensure the availability of cement in the upcoming period in all governorates of Oman, while maintaining prices. This can be achieved by ramping up the output of some local factories as well as facilitating direct import of cement from other countries to cover shortages.

Oman Cement Company on Wednesday clarified its position regarding the statements in social media about increasing the cement prices and its inability to meet the demand of the local market which resulted in customers being waiting in queues for long time.

‘The company confirms that no increase in prices has been made by Oman Cement so far. The long queues of waiting trucks is due to severe shortage of imported cement (due to its high prices) as well as shortage of local supply. This has driven those customers who used to buy cement from the neighbouring countries and other local producers to buy cement from Oman Cement,’ Oman Cement Company said in a disclosure to the Muscat Stock Exchange.

‘In light of this frustrated and increased demand of cement, Oman Cement has increased its production capacity to optimum extent possible averaging 10,000 tonnes per day,’ the company said. Oman Cement, however, added that the cement demand is still beyond its capabilities to meet.

Oman’s largest cement manufacturer, Raysut Cement Company, had not disclosed any statement on the situation till late evening on Wednesday. The Muscat Stock Exchange yesterday temporarily suspended the trading of Raysut Cement’s shares.

‘Raysut Cement shares have been temporary suspended until their disclosing of commentary over the reasons of the scarcity of cement production and its impact on the financial position of the company (if any),’ the Muscat Stock Exchange said.