(MENAFN- Muscat Daily) Muscat -
Saudi Arabia's National Steel Company has signed an agreement with Salalah Free Zone Company (SFZ) to establish Oman's largest iron industries complex with an estimated investment of US$500mn in Salalah Free Zone.
On its Twitter account, SFZ said that the agreement was signed by Ali bin Mohammed Tabouk, chief executive officer of Salalah Free Zone Company and Sheikh Ahmed al Shahin, chairman for National Steel Company in Riyadh.
'We have signed a usufruct agreement to establish the largest complex of iron industries with a direct gulf investment worth US$500mn,' SFZ said.
The construction for the new iron industries complex project, which will create 500 direct jobs, will start in the first quater of 2020, the company added.
Tabouk said that the complex will have a capacity to manufacture 150,000 tonnes of iron products. In a statement to Oman News Agency, Tabouk said this project is a significant leap for investments in the region, pointing out that the plant will use the latest technology and innovative engineering designs that will help in reducing the construction cost up to 20 per cent and project time up to 50 per cent in steel related products.
He said, 'Sixty-five per cent of the factory's production will be exported to the regional markets and it will manufacture various steel products that are used in the manufacture of refrigerators, generators, panels, steel roofs, heavy structures for large commercial and residential buildings, bridges, commercial complexes, factories and gas stations.'
SFZ has succeeded this year in attracting several foreign investments that will contribute to the national economy and create direct employment opportunities for citizens.
In July, SFZ signed a usufruct agreement for the construction of Salalah refinery project having a production capacity of 150,000 barrels per day. The total investment envisaged for the project is around US$2.5bn.
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