MUSCAT: Oman’s authorities are advancing plans for the establishment of an Integrated Economic Cluster for Aluminium Industries at Suhar, currently the epicenter of multibillion dollar investments centred around the silvery-white metal.
Spearheading these efforts is the Oman Vision 2040 Implementation Follow-Up Unit, which is working alongside a number of government ministries and agencies to pave the way for the realization of this strategic initiative.
“The Integrated Economic Cluster for Aluminum Industries in Suhar aims to achieve integration among the various aspects of the aluminium industry by linking the upstream (primary aluminium production) with the downstream (higher value-added industries). The cluster focuses on fostering growth and providing a comprehensive infrastructure to support the sector through (a number of) objectives and strategies,” the Unit stated in its recent annual report.
At the heart of this proposed cluster is Sohar Aluminium, one of Oman’s biggest non-oil industrial ventures established in 2004 with an investment of around $2.4 billion.
Hot metal, accounting for roughly 60 per cent of the smelter’s 395,000 tonnes per annum capacity, is currently allocated to a host of downstream customers, notably Oman Aluminium Processing Industries (OAPIL), the country’s leading manufacturer of aluminium rods and overhead line conductors; Oman Aluminium Rolling Company LLC (OARC), which produces flat-rolled aluminium products; Oman Aluminium Cast LLC (OAC), a specialised cast-house that produces high current bus bars required by aluminium smelters and other electrolysis plants; and Synergies Casting Oman (SCO), a plant specialising in the manufacture of high-end aluminium alloy wheels for the global automotive industry.
Significantly, an Integrated Economic Cluster for Aluminium Industries has the potential to drive further growth at both the upstream and downstream ends of the aluminium value chain, according to the Oman Vision 2040 Implementation Follow-up Unit. Noteworthy is its potential to expand the production capacity of primary aluminium and enhance conversion processes to manufacture higher value-added products, it said.
Equally promising is the potential for developing new downstream processing industries to improve value addition and increase product innovation. Similarly, an integrated approach will unlock opportunities for increasing competitiveness through improved efficiency and productivity. Furthermore, there are options for developing supply chains and integrated logistics solutions to ensure efficient transportation and distribution between factories.
Collaborating with the Implementation Follow-up Unit in progressing this initiative are the Public Authority for Special Economic Zones and Free Zones (OPAZ), Public Establishment for Industrial Estates (Madayn), National Programme for Economic Diversification (Tanweer), National Programme for Investment and Exports Development (Nazdaher), and the Industrial Innovation Academy.
In June, a joint team representing these institutions met with top officials of Sohar Aluminium to identify investment opportunities likely to be spawned by an integrated economic cluster for the aluminium industry. They pledged to formulate a comprehensive action plan for the development of the cluster in Suhar. The strategy is expected to incorporate options for recycling aluminium – a nascent sector with significant potential in Oman.
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