Minerals Development Oman (MDO), an affiliate of Oman Investment Authority (OIA), has established a strategic partnership with Synergies Casting Oman (SCO), which is set to start commercial operation of its alloy wheel manufacturing plant in Suhar Industrial Estate in Q1 2022. As part of the partnership, MDO is acquiring a 14.8 per cent stake in Synergies Casting.
Set up with an investment of RO 42 million, the Suhar plant has a capacity to produce 1.2 million tons of alloy wheels. It is the first plant of its kind in the Sultanate of Oman that makes high-end aluminum alloy wheels for automobiles.
The project’s shareholders also include Oman Development Fund, Synergies Casting India, Sultan’s Special Force Pension Fund, Al Jeel Al Saeid for Business, and Sohar International Bank.
As part of the shareholding agreement, MDO hired 100 Omanis in a number of technical and administrative jobs within Synergies Casting, thereby increasing the Omanisation to 58 per cent. SOC is also targeting even higher Omanisation rates that will be achieved in the future.
MDO’s CEO, Eng Nasser al Maqbali said: “This is an important milestone that MDO is closing the year 2021 with. Recruiting Omani talent, as well as boosting the Omanisation rates in SCO is an achievement that we are proud of. This project is an essential element within MDO’s vision to promote the Omani mining sector.”
He added: “Alloy wheels as an alternative to the traditional steel wheels is a trend towards the future due to its lightness, strength, attractive designs and environmental friendliness. This acquisition will enhance the Company’s ability to attract foreign investments by building commercial relationships with automobile manufacturers around the world in order to deliver sustainable In-Country Value for Oman.”
Eng Ahmed al Mazrouei, Executive Director of SCO, said: “We are pleased to welcome MDO as a partner in this leading project as it represents a valuable addition to our expansion plans.”
Globally, alloy wheel demand is estimated to increase from 219 million wheels in 2015 to 296 million wheels in 2023, rising to 326 million wheels in 2028.
