Aligned with Oman's Development
Sohar, Oman: Larsen & Toubro, the USD 14 billion technology, engineering, construction and manufacturing major, is rapidly progressing on its targeted objective to develop its Oman facilities as a regional manufacturing hub to cater to the growing needs of the countries in the Gulf and beyond.
L&T's facilities at Sohar are already the Company's largest manufacturing footprint outside India - far larger than its plants in China, South East Asia and Europe - and are actively contributing to the economic growth of countries in the region.
The Company's twin facilities in Sohar consist of a large modular fabrication yard - the only such large facility in Oman and among few facilities in the region capable of loading out large structures weighing as much as 20,000 tons. Adjoining the yard is a Heavy Engineering manufacturing facility that makes complex process plant equipment for the refining, petrochemical, fertiliser and power sectors.
Commencing production in 2007, the facilities already have a record of impressive technological accomplishments - a large of number of well-head platforms, offshore jack-up rigs, and multiple reactors with complex metallurgy. But perhaps of even greater significance are the positive social changes and economic impact that the L&T Sohar Complex has brought about.
In 2010, when the fabrication yard was formally dedicated to the nation, L&T's Group Executive Chairman, Mr A M Naik had said that the L&T modular fabrication facility shares the values of its parent companies. This includes aligning the Company's goals with the vision of the region in which its facilities are located. The focus at all times is on sustainable growth in harmony with the environment and the community. Omanisation fits in well with the Company's higher objective of participative growth. The emphasis is not just on business growth, but on qualitative improvement of skills of our Omani team members through training and raising local competency levels to world standards. L&T's long term commitment to Oman is evident from the investment of resources in the large local manufacturing facilities.
Omanization - a Continuous Commitment
Recruitment of Omani nationals has been consistent at multiple levels. Omani talent at L&T Modular Fabrication Yard work in all functions like engineering, design, manufacturing, quality control, project planning, finance and accounts, IT, materials management, personnel & administration, safety and security. The facility is already responsible for significant employment generation - direct and indirect. Execution of large prestigious international projects for export from the L&T Modular Fabrication Yard has facilitated the transfer of specialized fabrication technologies to the Sultanate of Oman.
Besides providing jobs to around 650 Omani employees, the project has also spawned the growth of ancillary units that provide a range of support services to the yard thus contributing to the overall industrial development of Sohar and Oman.
Continuous training and skill-building are intrinsic to all L&T's operations across the globe. Sohar has benefitted from this traditional L&T commitment. A dedicated Training Centre at Sohar imparts a high level of welding skills. It equips local youth with the capabilities that will place them on par with the best in the industry. Training and skill development enhances employee's earning capacity and improves their overall standard of living.
As part of its CSR initiatives L&T engages in a broad range of activities for the upliftment of the community.
High In-Country Value (ICV)
The Sohar complex has proved to be a valuable engine of economic growth and exports. As the only facility of its kind in Oman, and among the largest in the region, the yard is in a particularly advantageous position to meet the needs of the oil and gas industry of the region and beyond. Most of its products are exported to other countries in the Gulf, India, South East Asia, Europe and the Americas, thus earning foreign exchange for the country. This trend is likely to grow in the future as the region prepares to accelerate growth through oil diversification policies and an extra focus on manufacturing.
Long Term Asset
The yard was adjudged 'Best Offshore Construction Yard' in the GCC at the Marine International Maritime Awards ceremony in 2011. It also won the HSE Excellence award from the American Society of Safety Engineers in 2012, and in 2013, the prestigious award from The Royal Society for the Prevention of Accidents.
L&T MFY is committed to the development of skills of locals. A welder-training centre has been set up on the campus for this purpose. Trade related training is also imparted to the local youth.
From a long term perspective, the high tech manufacturing capacities set up by L&T at Sohar has assets that will bolster the Sultanate in its endeavour to broad-base and diversify its economy. L&T ranks among the world's top five manufacturing companies in the heavy engineering space. Its track record includes reactors and vessels that are among the world's biggest and heaviest. In Sohar, the Company seeks to replicate its capabilities of Mumbai, Surat and Coimbatore. This will enable the Sultanate to manufacture and export equipment that meets global benchmarks, and builds a sustainable revenue source.
Currently, the Modular Fabrication yard is executing a number of platform projects for the Abu Dhabi based offshore oil and gas producer - Abu Dhabi Marine Operating Company (ADMA-OPCO). These platforms will be installed in the Nasr and Umm Lulu 'new field' projects of Abu Dhabi. Scheduled to be loaded-out early in 2014, the successful execution of the ADMA-OPCO project represents a major milestone for L&T's yard and affirms the expanding technological capabilities of Oman.
These and other projects in the future reaffirm the commitment of L&T to work in alignment with the long term interests of the people of Oman, and provide the technological capability to help implement the vision of His Majesty Sultan Qaboos Bin Said in Oman's social and industrial renaissance.
Background:
Larsen & Toubro is a USD 14 billion technology, engineering, construction, manufacturing and financial services conglomerate, with global operations. Its products and systems are marketed in over 30 countries worldwide. L&T is one of the largest and most respected companies in India. A strong, customer-focused approach and the constant quest for top-class quality have enabled L&T to attain and sustain leadership in its major lines of business over seven decades.
© Press Release 2013
