$129.8m venture to build a factory that has an annual capacity of 1m tonnes
A joint venture between Oman’s Teejan Group of Companies and South African stainless steel product manufacturer, SMI Steelmor, has signed an agreement with Freezone Sohar to set up the Sultanate’s first stainless steel company.
With an annual capacity of one millions tonnes, the $129.8m venture plans to build a factory to produce stainless steel and work on semi-finished and finished products for the local and export markets.
Steelmor will provide its technology for the Sohar project, while raw material will be procured from several countries including Sweden and China.
The joint venture is 75% owned by Steelmor, with Teejan holding remaining 25% stake. However, the ownership pattern may change in the future, when both stakeholders look for new partners.