OMAN: Oman Cement to expand its milling capacity

Oman Cement Company is boosting its cement grinding capacity with the planned installation of a new cement mill with a capacity of 150 tons per hour (tph).

A tender to this effect has been floated by the company, Dr Abdullah Abbas Ahmed, Chairman of the Board of Directors, said a report of Oman Cement’s financial performance for the nine months ended September 30, 2012. The capacity expansion is the latest in a series of measures undertaken by the company in line with soaring cement demand, he added.

Meanwhile, profit after tax jumped 32.5 per cent to RO 12.859 million for the period under review, against net earnings of RO 9.703 million during the same period last year. Total cement sales climbed 20.8 per cent to 1.689 million metric tons this year, from 1.398 million MT last year. In value terms, the turnover rose 15.16 per cent to RO 41.762 million this year, from RO 36.265 million last year.

Clinker production also sharply increased to 1.505 million MT this year, from 1.037 million MT last year. In addition, the company had to import 54,652 MT of clinker to bridge a temporary shortfall stemming from the prolonged shutdown of one of its kilns which was being fitted out with pollution control equipment. In contrast, clinker imports were high as 291,498 MT during the corresponding period of last year.

Cement production was 19.6 per cent higher at 1.677 million MT this year, from 1.402 million MT during the corresponding period of last year. The company also imported 752 MT of cement to cover a temporary shortfall in supply.

Commenting on the outlook for cement demand, the Chairman said: “The underlying fundamentals for the Omani cement market continue to remain strong. This has been demonstrated by the positive growth in sales volumes in the first nine months of the year. The company is positive about the sector demand and it is felt that while competition from neighbouring countries and locally will still continue to exert pressure on margins, the company is well-positioned to retain and improve its market share in Oman.”

The Report further added: “The company’s new clinker production line has provided the much needed support to meet the expected demand in the Sultanate. Additionally, with the enhanced level of government spending along with key project implementation during the remaining period of the existing 5-year plan, the company expects further improvement in demand for cement in the Sultanate.”