NewsDownstreamOAPIL plans to double capacity
Times OF OMAN

OAPIL plans to double capacity

Edited by : AL CIRCLE
2 min read
Oman Aluminium Processing Industries (OAPIL), a joint venture between Oman Cables Company and Takamul Investment Company, is planning to double its capacity to over 100,000 tonnes per annum (tpa), from 48,000tpa now.

“Our master plan is to achieve a production capacity of over 100,000tpa. However, it depends on how much aluminium Sohar Aluminium can supply. Our expansion will depend on commitment from Sohar Aluminium (for liquid aluminium) and government on natural gas,” Hussain Salman Al Lawati, vice-chairman and managing director of Oman Cables, told Times of Oman.

OAPIL gets its feedstock — liquid aluminium — from Sohar Aluminium – for producing rods and overhead conductors.

The capital expenditure for the proposed expansion is not yet determined.

“We have invested RO15 million for the present plant,” he added on the sidelines of the Arab International Aluminium Conference (Arabal) here yesterday.

The plan is to add one more production line with the existing plant, which started operation almost 14 months ago and produces aluminium and alloy rods and overhead conductors for the power industry.

Al Lawati said Oman Aluminium Processing is now stabilising operation and is expected to achieve 100 per cent capacity utilisation by next month. “The Sohar unit is getting recognition in overseas markets. We are exporting to Europe, Africa and the Middle East and North Africa region.”

He said demand for power cables in the Gulf region is expected to grow by as much as 20 per cent every year, which is mainly driven by a marked growth in power generation.

Demand for power cables in Oman is also expected on similar lines. “When there is a growth in power generation and population, there is always a demand for cables,” he added.

Presenting a paper on ‘downstream aluminium and sustainability in Oman,’ Frederic Rouyer, Chief Executive Officer of OAPIL, said value addition of primary aluminium is key to Oman’s industrial development.

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