(MENAFN - Muscat Daily) Muscat- Salalah Mills Co is planning to set up a macaroni plant in Ethiopia to target the large Ethiopian market and neighbouring African markets.
The company has signed a memorandum of understanding (MoU) with a giant Ethiopian industrial and trading group to set up the plant.
'The MoU was signed with a giant trading and industrial group in Ethiopia to set up a macaroni plant, which includes transferring one of the long cut production lines from Salalah Macaroni Factory to Ethiopia, in addition to installing a new short cut production line. The feasibility study is expected to be finalised by the end of first quarter of this year', Salalah Mills said in the company report submitted to the Muscat Securities Market.
It said the new project in Ethiopia will be the base for the additional food projects because of the size of the Ethiopian market and neighbouring markets. 'The transfer of one production line from Salalah will reduce the amount of equipment depreciation and improve the competitive position of Salalah Macaroni Factory', the company added.
The merger of Salalah Mills and Salalah Macaroni Co was completed in December last year. Salalah Macaroni Factory has four production lines, with a total capacity of 123,000 metric tonnes per year.
In December, Salalah Mills' board also approved the establishment of an import and distribution company in the UAE and Togo.
Salalah Mills reported total revenues of RO52mn for the year ended December 31, 2018, while its export revenues representing over 50 per cent of total revenues.
The core business of Salalah Mills is the milling of wheat and the production of different types of flour and by products. Through several expansions of milling capacity, the company said it achieved its goal to be the biggest flour mill in Oman and one of the leading flour mills in the region. Salalah Mills sells its products primarily in three geographical areas: Oman, Africa and other Asian countries.