Al Maha Ceramics Company, one of the largest floor wall floor tiles producing companies in Oman, has signed an agreement to purchase a 45 percent stake in Al Hael Ceramics Company for a value of $5.4 million.
Al Maha Ceramics will manage and operate Al Hael’s factory for a period of five years. It was also agreed that the Al Maha brand will be used in Al Hael products during these five years.
Al Hael Ceramics factory is one of the largest tiles factories in the Middle East and is equipped with a state-of-the-art plant with the world’s best Italian technologies in tiles manufacturing from SACMI in terms of types of machinery and the latest technology. The acquisition is expected to help Al Maha substantially increase its production capacity and add to its product portfolio while benefiting from economies of scale.
“The production capacity of Al Hael factory is 55,000 square meters per day of ceramics and porcelain. The factory can also produce large sizes of porcelain plates, and it is hoped that the factory’s production will cover a large percentage of the local market’s need for high-quality ceramic and porcelain tiles,” Al Maha Ceramics said.
The company pointed out that the completion of the acquisition process is subject to the approval of the competent authorities. “The company shall keep the shareholders appraised of further developments concerning the purchase of Al Hael Ceramics shares through further disclosures,” Al Maha Ceramics added.
According to reports, the ceramic tiles market in GCC is poised to grow by $1.86 billion during 2022-2026 progressing at a CAGR of 6.3 percent during the forecast period.