Responding to the public outcry, voiced on social media platforms, about the rising prices and scarce supplies of cement, leading cement manufacturer Oman Cement Company (OCC) said it would ramp up production to ease what appears to be a severe shortage of this key construction material.
In a filing to the Capital Market Authority (CMA) on Wednesday, Oman Cement CEO Eng Salim Abdullah al Hajri acknowledged that the shortfall has resulted in long lines of trucks and waiting customers.
“The Company confirms that no increase in prices has been made by OCC so far, and that the long queues of waiting trucks is due to severe shortage of imported cement due to its high prices as well as the shortage of the supply from the local cement which has driven those customers who used to buy cement from the neighbouring countries and other local producers to buy cement from OCC.”
The CEO further added: “In light of this frustrated and increased demand of cement, the Company has increased its production capacity to the optimum extent possible averaging (10,000) TPD. However, cement demand is still beyond OCC capabilities to meet. As OCC emphasises its main role in supplying the local market with cement, it further confirms its commitment to work with all its partners to provide high quality products at reasonable prices according to the optimum production capacity possible.”
The government’s 51 per cent stake in Oman Cement, the country’s first cement manufacturer, is held by Oman Investment Authority (OIA), the integrated sovereign wealth fund of the Sultanate of Oman.