Oman Plans Integrated Aluminium Industries Cluster in Suhar
Omani authorities are advancing plans to establish an Integrated Economic Cluster for Aluminium Industries in the Wilayat of Suhar, a region already at the heart of substantial aluminium-related investments. The Oman Vision 2040 Implementation Follow-Up Unit is spearheading this initiative, collaborating with various government ministries and agencies to move the project forward.
The planned cluster aims to integrate different aspects of the aluminium industry, connecting upstream primary aluminium production with downstream, value-added industries. The focus is on fostering growth by creating a comprehensive infrastructure to support the aluminium sector through a series of objectives and strategies, according to a recent report by the Implementation Follow-Up Unit.
Central to this initiative is Sohar Aluminium, one of the largest non-oil industrial ventures in Oman. Established in 2004 with an investment of approximately $2.4 billion, Sohar Aluminium's smelter currently has a capacity of 395,000 tonnes per year. Of this, about 60% is allocated to downstream clients, including Oman Aluminium Processing Industries (OAPIL), Oman Aluminium Rolling Company (OARC), Oman Aluminium Cast (OAC), and Synergies Casting Oman (SCO), all of which play key roles in the local aluminium ecosystem.
The proposed cluster has the potential to foster growth at both the upstream and downstream ends of the aluminium value chain, expanding the production capacity of primary aluminium and enhancing conversion processes for higher value-added products. It also offers opportunities for establishing new downstream processing industries, driving value addition, and increasing product innovation.
Furthermore, the integrated approach is expected to unlock efficiencies and improve productivity, thereby boosting the competitiveness of the aluminium sector. It will also facilitate the development of supply chains and integrated logistics solutions, ensuring efficient transportation and distribution among the various industries in the cluster.
A number of institutions are working alongside the Implementation Follow-Up Unit to advance this initiative, including the Public Authority for Special Economic Zones and Free Zones (OPAZ), Public Establishment for Industrial Estates (Madayn), National Programme for Economic Diversification (Tanweer), National Programme for Investment and Exports Development (Nazdaher), and the Industrial Innovation Academy. In June, a joint team from these bodies met with officials from Sohar Aluminium to identify new investment opportunities that could emerge from the planned aluminium cluster.
