Oman- Sezad signs usufruct agreement with Al Wusta Cement

(MENAFN- Muscat Daily) Muscat- The Special Economic Zone Authority at Duqm (Sezad) on Thursday signed a usufruct agreement with the Al Wusta Cement Company to establish a cement plant in Duqm.

H E Yahya al Jabri, chairman of Sezad, Dr Abdullah bin Abbas, chairman of Al Wusta Cement, and Sheikh Ahmed bin Yousef, chairman of Raysut Cement Company signed the agreement.

Under the usufruct contract, Al Wusta Cement receives a 500,000sqm land to establish the cement plant for 50 year- renewable durations, according to an Oman News Agency report.

Al Wusta Cement is the latest investment in Duqm Special Economic Zone.

The company was registered as a limited liability company (LLC) in partnership between Oman Cement Company and Raysut Cement Company.

Al Wusta Cement said that the construction work for the project is expected to begin in 2018 and production is likely to begin in 2020. The plant is expected to start production of 5,000 tons per day and will gradually increase to 10,000 tons per day according to the needs of the market.

The company's production of cement will contribute to cover the deficit in domestic demand, whether from the public sector for infrastructure construction or private sector companies, and the rest of the production will be exported abroad.

Al Wusta Cement expects that the new project will provide many business opportunities for small and medium enterprises (SMEs) by moving the activities of supporting companies to produce cement, such as transport companies and rock detonation companies to supply raw materials from quarries to the factory.