MUSCAT -- Sohar Sulphur Fertilizers LLC is set to launch its sulphur bentonite fertilizer plant at Sohar Industrial Estate next month, according to a senior official of Takamul Investment, which has a majority stake in the company. Yaarub al Yaarubi, Assistant Business Development Manager at Takamul, which is the downstream investment arm of the wholly government owned energy investment vehicle Oman Oil Company, said the new venture will be operational in May.
Al Yaarubi made the announcement at last week's 3rd Oman Economic Forum during a presentation on Takamul's role in the development of Small and Medium Enterprises (SMEs) in the country. The 30,000 tonnes per annum facility will process sulphur, a byproduct of the crude refining process, into sulphur bentonite fertilizer, a micronutrient used extensively around the world to help fortify sulphur-deficient soils.
The project, which is the first of its kind in the Sultanate, will add to a growing portfolio of downstream ventures promoted by Takamul based on feedstock and raw materials already available in the Sultanate.
Sohar Sulphur Fertilizers LLC is 55 per cent owned by Takamul. Local Omani firm Awtad Projects and Development, which is the investment arm of Al Nahdha Group, has a 25 per cent stake in the venture.
The balance is held by US firm CoreSulphur, the world's leading provider of sulphur bentonite fertilizer technology. Sulphur as raw material for the project will be supplied by Oman Oil Refineries & Petrochemical Industries (ORPIC), which operates and manages the country's two refineries at Sohar and Mina al Fahal. Under an agreement concluded with Takamul last month, ORPIC has pledged to make available 30,000 tonnes per annum of sulphur for the next five years. Additional volumes will be allocated once Sohar Sulphur Fertilizers goes ahead with plans to augment the capacity of its Sohar plant, it is learnt.
Addressing delegates at the economic forum, Al Yaarubi said Takamul was keenly exploring downstream investments in a number of areas, chiefly petrochemicals, minerals and metals. Already, two Takamul ventures positioned downstream to Sohar Aluminium are in various stages of development and operation, he said. Oman Aluminium Processing Industries (OAPIL), a joint venture between Takamul and Oman Cables Industries, is already operational.
The second project, centring on a new aluminium rolling mill at Sohar, is currently under construction at a cost of around $400 million, he said. The latter has the potential to attract tertiary investments in SMEs focusing on the manufacture of products such as office curtains, utensils, and so on, the official said. Significantly, Takamul envisions a key role for itself in creating many tiers of downstream industries as a way of bridging the gap between major base industries and SME investments, said Al Yaarubi.
These government-promoted base industries will provide the feedstock for SMEs, while Takamul will play the role of an enabler, providing technology support, training and other services, he added.
© Oman Daily Observer 2012
