real estate

Oman Cement to modernise plant, expand capacity

October 31, 2020

Majority government-owned Oman Cement, the Sultanate’s first cement manufacturer, has initiated a series of steps to upgrade its flagship plant at Misfah in Muscat Governorate, as well as develop new capacity at Duqm in Al Wusta Government.
It includes a plan to eliminate bottlenecks in the 3.6 million tonnes per day (tpd) capacity Misfah complex where all of the company’s current output of cement and related products origins.
Recommendations made by a consultant in this regard are being implemented, with a contractor due to be appointed to carry out some key tweaks in plant machinery and operations.
According to the company’s newly published Directors’ report accompanying its financial results for the nine months ended September 30, 2020, the upgrade also envisions the installation of a new power plant based on the latest technology at the Misfah site. The goal is to achieve higher energy efficiency in the company’s operations, the cement manufacturer said. To this end, the company is evaluating offers from interested EPC bidders for a contract to execute the project, it noted.
Bids are also being evaluated for a contract to support MSM-listed Oman Cement’s use of waste tyres as an alternative fuel source. Oman Environmental Services Holding Company (be’ah), which is overseeing the management of the Sultanate’s solid waste sector, has already pledged to supply around 30,000 tons per annum of Tyre Derived Fuel (TDF) processed from scrap tyres. An agreement to this effect was formalised between the two organisations earlier this year.
“The company has floated tenders for the appointment of an EPC contractor. Offers from EPC contractors have been received and the evaluation is under process’’, said Dr Abdullah Abbas Ahmed, Chairman of the Board of Directors, in the report.
Furthermore, Oman Cement is making headway in the development of a new integrated cement plant in Duqm Special Economic Zone (SEZ). The 5,000 tonnes per day capacity clinker facility will be set up by Sahawa Cement Company LLC, a subsidiary of Oman Cement. Bids from EPC contractors are being evaluated for the estimated $228 million project, according to the chairman.
The new developments come amid a sharp upturn in planned cement manufacturing capacity in the Sultanate. Earlier this week, Duqm Cement Projects International LLC (DCPI), a subsidiary of Seven Seas Company, said it is developing an integrated cement complex at Duqm with an investment of $435 million. The mega plant, boasting a capacity of 3.50 million tonnes per annum (equating to 10,000 tonnes per day), is set to be the largest investment in the cement sector.
Salalah-based Raysut Cement Company, which is currently the largest cement manufacturer, has commenced construction work on a cement grinding mill at Duqm. The project, involving an investment of $30 million, will lift Raysut Cement’s total annual output to 7.4 million tonnes.

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