News

Strategic partnership between Minerals Development Oman and Synergies Casting Oman

Muscat, 28 December 2021

Minerals Development Oman has recently established a strategic partnership with Synergies Casting Oman “SCO” to acquire 14.8% of the Company's shares, that plans to operate an alloy wheel manufacturing plant in Suhar Industrial Estate, which expected to start commercial operation in Q1 2022. The 42 million OMR project is expected to produce 1.2 million tons of Alloy wheels, being the first plant in Oman that makes high-end aluminum alloy wheels for automobiles.

The project's shareholders also include Oman Development Fund, Synergies Casting India, Sultan Special Force Pension Fund, Al Jeel Al Saeid for Business and Sohar International Bank.

As per the terms of the shareholding agreement, MDO hired 100 Omanis in a number of technical and administrative jobs within SCO, increasing the Omanisation rate upto 58%. SOC is targeting even higher Omanization rates that is planned to be achieved in the future.

MDO’s CEO, Eng. Nasser Al Maqbali said: " this is an important milestone that MDO is closing the year 2021 with. Recruiting Omani talent, as well as boosting the Omanization rates in SCO is an achievement that we are proud of. This project is an essential element within MDO vision to promote the Omani mining sector”.

He added: “Alloy wheels as an alternative to the traditional steel wheels is a trend towards the future due to its lightness, strength, attractive designs and environmental friendliness. This acquisition will enhance the Company's ability to attract foreign investments by building commercial relationships with automobile manufacturers around the world in order to deliver sustainable In-Country Value for Oman.

Eng. Ahmed Al Mazrouei, Executive Director of SCO, said: " We are pleased to welcome MDO as a partner in this leading project as it represents a valuable addition to our expansion plans".

Globally, alloy wheels’ demand is estimated to increase from 219 million wheels in 2015 to 296 million wheels in 2023, and then to 326 million wheels in 2028.

All copyrights are preserved to Minerals Development Oman SAOC 2022