Oman Cables Industry SAOG, a premier cable manufacturing company based in Al Rusayl Industrial City, has committed an investment of RO 1.9 million (USD$4.94 million) into its subsidiary, Oman Aluminium Processing Industries SPC (OAPIL). This strategic initiative, approved by the Board of Directors, is expected to yield a 75 per cent internal rate of return (IRR) over three years, according to a recent filing with the Muscat Stock Exchange (MSX).
The substantial investment will facilitate the establishment of a cutting-edge production facility in Sohar to manufacture advanced composite core conductors. These innovative conductors are designed to enhance energy grids' capacity, reliability, and resilience, supporting the global shift towards sustainable energy solutions.
Cinzia Farisè, Chairperson of the Board of Directors, highlighted the project's potential to broaden OAPIL's operational capacity and enhance Oman Cables' profitability and market diversification. This new facility will reinforce the organisation's presence in the international arena, especially within the rapidly expanding energy infrastructure sector.
OAPIL, founded in 2008, has established itself as a significant player in Oman's aluminium and electrical transmission markets, expanding its footprint to over 45 countries. With this latest investment, the company aims to strengthen Oman's industrial infrastructure further, contributing to the Sultanate's long-term efforts to support global energy transitions.
Oman Cables confirmed it would update the project's progress as it positions itself for emerging opportunities within the global energy landscape.
AL Circle, in its latest industry-focused report, "ALuminium Wires & Cables - Insights & Forecast to 2030", revealed that world aluminium wire rod usage is estimated to have increased from 7.6 million tonnes in 2020 to about 8 million tonnes in 2023 and is estimated to reach 8.2 million tonnes in 2024. Aluminium has numerous applications in the electrical and electronics industry due to its properties. The global market size for wire and cable was US$ 191.6 billion in 2022, and it is expected to grow at a CAGR of 6.30 per cent from 2023 to 2032.
In 2023, the global aluminium wire rod market was valued at $22.6 billion based on consumption and trade flow by region. It is anticipated to grow at a CAGR of 3.7 per cent from 2024 to 2030. The increasing demand from the power, automotive, and aerospace sectors is a substantial factor driving this market. This report focuses on the usage of aluminium wire rods in power cables & conductors used in transmission and distribution lines.
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Top Image credit: QAPIL website
Information credit: Oman Observe
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