MUSCAT, MAY 19
In a move announced through a filing to the Muscat Stock Exchange (MSX) on Sunday, Salalah Mills Company (SAOG) has announced that it has signed an Memorandum of Understanding (MoU) with Atyab Food Industries Company, a wholly-owned subsidiary of Oman Flour Mills SAOG (OFM), to explore the potential merger of their industrial bakery operations in the Khazaen Economic City.
This MOU signifies a collaborative effort between the two companies, both leading players in Oman’s bakery sector, to assess the economic viability of this venture through a comprehensive feasibility study. The study will delve into financial aspects, operational efficiency, and the formulation of a strategic plan aligned with both companies' long-term goals.
This potential partnership is expected to yield significant benefits for both companies, contribute to the economic growth of the region, and create new employment opportunities.
This MoU has the potential to significantly reshape the industrial bakery landscape within the Khazaen Economic City. The combined expertise and resources of Salalah Mills and Atyab Food Industries could lead to the creation of a stronger and more competitive entity in the market.
Publicly traded Salalah Mills, which has its flagship operations in Raysut Industrial City in Salalah, had previously announced plans to establish a Food Industries Hub at Khazaen Economic City. In addition to investments in an industrial bakery, the Khazaen facility is also proposed to host production lines for frozen and semi-cooked pastries in the first phase, followed by frozen cakes, snacks, noodles and biscuits in the second phase.
At the same time, Oman Flour Mills – the parent company of Atyab Food Industries – has been progressing plans for the establishment of an industrial food cluster, envisioning a variety of small-scale manufacturing units that will meet the food-related requirements of Oman.
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