Oman’s economic diversification efforts, Sohar Aluminium partnered with their latest downstream customer, Synergies Castings LLC, the leading manufacturer of aluminium alloy wheels in India. The agreement will begin with the construction of a USD 100 Million hi-tech alloy wheel manufacturing plant situated in the Sohar Industrial Estate adjacent to Sohar Aluminium premises. Construction is scheduled to begin in the coming months with production expected to commence in 2020.
Eng. Said Al Masoudi, Sohar Aluminium’s Chief Executive Officer said that “A central component of Sohar Aluminium’s strategy is to promote and support the growth of downstream aluminium industries within the Sultanate. With this agreement in place, we will meet our goal of supplying 60% of our hot metal production to downstream partners. We are offering them proximity to raw materials, a significant value proposition that provides our downstream customers with a distinct energy cost advantage. This initiative is also in sync with our intent to build beneficial relationships with local suppliers as well as customers from Oman and abroad in order to deliver sustainable In-Country Value for Oman.”
At full capacity, Sohar Aluminium will supply more than 24,000 tonnes of aluminium per year which will be used to produce high-end aluminium alloy wheels for automobiles. The wheels will be supplied directly to automobile manufacturers around the world.
In line with the Tanfeedh programme, the new Synergies plant will contribute to Oman’s economic growth and create new forms of employment for high skilled talent. Once fully operational, the plant will produce around two and a half million wheels annually with an estimated 500 direct jobs created.
The alloy wheel segment is estimated to hold the largest share in the global aluminium downstream usage market. In 2017, the automotive wheel market was worth an estimated USD 32 bn and is projected to reach USD 50 bn by 2025. With increasing international demand for alloy wheels, this project will further develop the manufacturing industry in the Sultanate of Oman.
Mr Khalid Al Kimyani, Chairman of Synergies Castings said that “Oman’s abundant resources combined with its growing economy and infrastructure make it an ideal win-win agreement. With Sohar Aluminium as a supplier, our expansion in this region will further help us deliver quality around the world.”