Oman Fasteners to Invest $60m for Setting up Sohar Project

Oman Fasteners, a prominent producer of fasteners in the Gulf region which shifted its manufacturing facility from Jebel Ali in the UAE to a temporary facility in Sohar, is going to invest $60 million in the first phase for building its plant within Sohar free zone.

Oman Fasteners has signed a tenancy agreement with Sohar Port for acquiring 120,000 square metres of land on lease in Sohar free zone, the company's chairman Haytham Macki told. "We will use 80,000 square metres of land in the first phase," he said, adding, "Relocating the plant to Sohar offers several advantages, including benefits due to the existing free trade agreement between Oman and the United States — the main export market for the company's product." Macki also noted that availability of power and tax incentives are other important reasons for the company to relocate its facility to Oman. This will allow the company to become more competitive regionally and globally. Macki said the company would invest another $60 million in the second phase for expanding installed capacity by 25 per cent and for increasing its product range, which will take the total investment to $120 million. The production capacity in the first phase will be around 60,000 tonnes of fasteners per annum. "The second phase will be completed within one-and-a-half years." The company exports its products to the US market, where it is used by the construction industry for building houses. It is also used by the manufacturing industry in the United States. Some of the European countries also import fasteners from Oman Fasteners.