Sohar Aluminium plans to triple plant capacity

Sohar Aluminium, the sultanate's sole aluminium manufacturing company, is planning to invest around US$4bn to ramp up the capacity of its plant to 1mn metric tonnes (MT) per annum.

Speaking to Muscat Daily on the sidelines of an agreement- signing ceremony between Sohar Aluminium and Public Authority for Crafts Industries (PACI) on Tuesday, Henk Pauw, CEO of Sohar Aluminium, said that the expansion plans will depend on the allocation and pricing of gas.

“If ongoing talks with the Ministry of Oil and Gas are positive the company would undertake the expansion to triple the capacity of its plant.”

The current capacity of Sohar Aluminium's plant in Sohar is around 370,000 MT per annum. Last year, the company said that it will invest US$3bn to double the capacity at its plant and the output of its 1,000MW captive power plant.

According to Pauw, “We are considering a US$4bn expansion. We are still in talks with the ministry regarding the allocation and pricing of gas.”

“We have carried out an extensive study on the benefits that Sohar Aluminium has for industries. We will definitely need the ministry's input as we are still in talks. The ministry's decision is crucial as this project is yet to be placed on the table.”

He added that aluminium prices have dropped in the global market, but the potential for growth in the industry is still very good. “There is need for two-three new aluminium smelters a year globally just to keep up with demand. China is a big competitor and they are building smelters to meet this growth in demand,” said Pauw.

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