Oman’s MDO takes 14.8% stake in Synergies Casting Oman

By Amirtha P S, Desk Reporter
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Oman-based closed joint-stock company, Minerals Development Oman (MDO) has entered into a strategic partnership with the leading manufacturer of aluminum alloy and chrome-plated wheels, Synergies Casting Oman (SCO) to acquire 14.8 percent of the company’s shares.

SCO is currently planning to operate an alloy wheel manufacturing plant in Suhar Industrial Estate, which is expected to start commercial operation in the first quarter of 2022. Being the first plant in Oman that makes high-end aluminum alloy wheels for automobiles, the $109 million worth project is expected to produce 1.2 million tons of alloy wheels.

As per the terms of the shareholding agreement, MDO hired 100 Omanis in a number of technical and administrative jobs within SCO, increasing the Omanisation rate up to 58 percent. SOC is targeting even higher Omanization rates that are planned to be attained in the future.

Eng. Nasser Saif Al Maqbali, CEO of MDO, remarked that, “This is an important milestone that MDO is closing the year 2021 with recruiting Omani talent. Boosting the Omanization rates in SCO is an achievement that we are proud of. This project is an essential element within MDO vision to promote the Omani mining sector.”

For his part, Eng. Ahmed Al Mazrouei, Executive Director of SCO, said, “We are pleased to welcome MDO as a partner in this leading project as it represents a valuable addition to our expansion plans.”

The shareholders of the project also include Oman Development Fund, Synergies Casting India, Sultan Special Force Pension Fund, Al Jeel Al Saeid for Business and Sohar International Bank.

According to reports, the demand for alloy wheels is estimated to increase from 219 million wheels in 2015 to 296 million in 2023, globally, and then to 326 million wheels in 2028.

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