SG:Sohar Aluminum capacity expansion decision by year end
Sohar Aluminum is expected to take a concrete decision on its proposed expansion to double the present capacity to 740,000 tonnes per annum by the year end.
Mr Henk Pauw CEO of Sohar Aluminum said that the capital expenditure of the proposed expansion which includes a massive captive power plant is envisaged at slightly higher than USD 4 billion.
Mr Pauw said that the Ministry of Oil and Gas is in negotiation with British energy giant BP for determining the natural gas price. Until that is concluded, it is very hard for me to speculate on what it means for us. The company is looking at different options or scenarios for the proposed expansion. We will have some kind of understanding before the end of the year.
Sohar Aluminum which produces aluminum ingots and sows needs commitment from the government on natural gas availability for proceeding with its plans to enhance capacity of its Sohar plant.
Ranked as the world's most modern smelter with its own 1,000 MW power station, Sohar Aluminum attributes the achievement of its one millionth tonne production milestone to its strategic focus on maximizing operating efficiencies, continuous improvement and the dedication of its employees.
Mr Pauw said that "We have achieved one million tonne production ahead of schedule and without any lost time injuries during three million hours."