28 August 2016
Muscat - Construction work on a major flour mill -- the third facility of its kind in the Sultanate -- is scheduled to commence in earnest next month at a waterfront location within SOHAR Port and Freezone. The project, envisioned as part of the Omani government's national food security strategy, is being implemented by Sohar Flour Mills, a subsidiary of Oman Flour Mills (OFM), which is partly majority owned by the government.
The 500 tonnes per day capacity mill is being built adjacent to a silo-based grain storage complex planned by the Public Authority for Strategic Food Reserves (PASFR). Together with an Agro-Terminal being developed by the SOHAR Port and Freezone, as well as a world-scale sugar refinery promoted by an Omani firm, the new investments will anchor the growth of a major Food Logistics and Distribution Hub at Sohar.
According to Ali Habaj, Chief Executive Officer of Oman Flour Mills Company SAOG, a contract for the supply of milling equipment for the new flour mill at Sohar has been finalised, with actual construction work expected to commence in September 2016. The project is slated for completion by end-2017, he revealed in a discussion note issued at the weekend.
Significantly, Sohar Flour Mills is also expected to play a major part in the development and management of the silo complex envisaged as part of the government's strategic food reserve initiative, according to the official.
"The company is in discussion with the (government) for undertaking the project for building silos for strategic food (reserves). Should this project materialise and be awarded to Sohar Flour Mills, the construction and management will be done by a group company and it will receive rental income from the government. The status of this project is still unknown," he however noted.
Established as a joint stock company in 1977 with a wheat milling capacity of 150 tonnes per day, OFM has since evolved into the nation's second largest miller with a current capacity of 800 tonnes per day. The company also operates an animal feed mill of a total capacity of 1,100 tonnes per day.
Over the years, OFM has diversified its activities to include poultry farming and egg production, industrial bakery operations, food processing and consultancy services, and food inspection. Modern Poultry Farm (MPF), which is 88 per cent owned by OFM, is currently expanding its egg production capacity by nearly 50 per cent. Output was in excess of 133 million table eggs during the fiscal year ended June 30, 2016.
Sohar Poultry Company SAOG (SPC), which is owned 94 per cent by Atyab Iffco Poultry LLC (an equal partnership with IFFCO of the UAE), is also weighing plans to expand operations at a new location for its poultry business. The company is awaiting the allocation of land by the government.
Atyab Bakery LLC, the group's new flagship, has seen revenues surge 34 per cent during the current year to RO 11.7 million, up from RO 8.7 million a year earlier. Demand for its range of bakery products continues to grow, according to Ali Habaj, with some production lines operating at almost full capacity.
"We are currently supplying to most major franchises in Oman and efforts are ongoing to start with others during the year. In the current year, we have plans to increase revenue and introduce new products and routes that will enhance our profitability," he added.
Muscat - Construction work on a major flour mill -- the third facility of its kind in the Sultanate -- is scheduled to commence in earnest next month at a waterfront location within SOHAR Port and Freezone. The project, envisioned as part of the Omani government's national food security strategy, is being implemented by Sohar Flour Mills, a subsidiary of Oman Flour Mills (OFM), which is partly majority owned by the government.
The 500 tonnes per day capacity mill is being built adjacent to a silo-based grain storage complex planned by the Public Authority for Strategic Food Reserves (PASFR). Together with an Agro-Terminal being developed by the SOHAR Port and Freezone, as well as a world-scale sugar refinery promoted by an Omani firm, the new investments will anchor the growth of a major Food Logistics and Distribution Hub at Sohar.
According to Ali Habaj, Chief Executive Officer of Oman Flour Mills Company SAOG, a contract for the supply of milling equipment for the new flour mill at Sohar has been finalised, with actual construction work expected to commence in September 2016. The project is slated for completion by end-2017, he revealed in a discussion note issued at the weekend.
Significantly, Sohar Flour Mills is also expected to play a major part in the development and management of the silo complex envisaged as part of the government's strategic food reserve initiative, according to the official.
"The company is in discussion with the (government) for undertaking the project for building silos for strategic food (reserves). Should this project materialise and be awarded to Sohar Flour Mills, the construction and management will be done by a group company and it will receive rental income from the government. The status of this project is still unknown," he however noted.
Established as a joint stock company in 1977 with a wheat milling capacity of 150 tonnes per day, OFM has since evolved into the nation's second largest miller with a current capacity of 800 tonnes per day. The company also operates an animal feed mill of a total capacity of 1,100 tonnes per day.
Over the years, OFM has diversified its activities to include poultry farming and egg production, industrial bakery operations, food processing and consultancy services, and food inspection. Modern Poultry Farm (MPF), which is 88 per cent owned by OFM, is currently expanding its egg production capacity by nearly 50 per cent. Output was in excess of 133 million table eggs during the fiscal year ended June 30, 2016.
Sohar Poultry Company SAOG (SPC), which is owned 94 per cent by Atyab Iffco Poultry LLC (an equal partnership with IFFCO of the UAE), is also weighing plans to expand operations at a new location for its poultry business. The company is awaiting the allocation of land by the government.
Atyab Bakery LLC, the group's new flagship, has seen revenues surge 34 per cent during the current year to RO 11.7 million, up from RO 8.7 million a year earlier. Demand for its range of bakery products continues to grow, according to Ali Habaj, with some production lines operating at almost full capacity.
"We are currently supplying to most major franchises in Oman and efforts are ongoing to start with others during the year. In the current year, we have plans to increase revenue and introduce new products and routes that will enhance our profitability," he added.
© Oman Daily Observer 2016
