Dhofar Steel announced a joint venture of Oman’s Salalah Development Co, the Al Suwaidi Group of the United Arab Emirates and Saudi Arabia’s Al Tuwairqi Group to build a $400 million steel plant in the southern Oman city of Salalah, a statement said on Tuesday.
The plant will produce 1 million tonnes of steel annually which would also create job opportunities for over 1,000 Omanis. The statement did not mention when construction would take place and did not give other details. The Al Tuwairqi Group operates steel product plants in Saudi Arabia.
The venture will be Oman’s second steel company, after a pelletising plant operated by Brazil’s Vale in the northern industrial city of Sohar.
Demand for steel in Oman is growing for oil industry and infrastructure projects. The country currently produces an average 902,000 barrels per day of oil; its oil and gas minister said last year that it was aiming for production of 1 million bpd in the next three years.
Oman plans to build a 1,000 km railway at an estimated cost of around 5 billion rials ($13 billion), with completion in 2018.