Muscat - National Aluminium Products Company is expanding its production capacity by installing two additional extrusions presses in a phased manner and a vertical powder coating plant. While the expansion including construction of a new factory building is estimated to cost RO 7 million, commercial production from the new plant is expected to start by the end of April this year. According to Raffy Manoug Kozadjian, Deputy Chairman of National Aluminium, the company is optimistic on getting volume orders in Oman and other markets in the GCC countries. "Major projects may be delayed, but markets in the GCC anticipate growth with expected investments in infrastructure projects and building construction", he said in the company's annual report for 2015.
Raffy said that the company will continue to explore opportunities for growth in its traditional and new markets it has captured during recent years by focusing on consolidating its market position through enhanced service and product offerings. "The business environment of the aluminium extrusion industry is challenging characterized by competitive supply sources from abroad and the impact of subdued oil prices on the construction industry", he said. The company achieved a net profit of RO 0.78 million compared to RO 0.70 million during the previous year, registering an increase of 11 per cent despite pressures on operating margins from increased input costs, particularly of raw material price and increased wage bill.
"In a price sensitive environment filled with increased competitive supplies from abroad, it has been difficult to transfer these increased costs to customers through higher selling prices. Management implemented strategies during the year that will enhance cost efficiencies in the future", he said. The Board of Directors of the company recommended a cash dividend of 13 per cent, which is 13 baisas per share, from the distributable surplus of the company subject to the approval of shareholders at annual general meeting. Raffy said that the company has always paid special attention to recruitment and training of Omani employees and is committed to progressively attain high levels of Omanisation at all levels. "The management has recently engaged with the support of the Ministry of Manpower and several technical colleges to place 31 nationals with engineering background and will intensify training the national workforce", he added.
© Oman Daily Observer 2016
