The Sultanate Monday signed an agreement with Shadeed Steel Company to provide a factory which it implements at Sohar Industrial Port with gas. Dr. Mohammed bin Hamad al-Rumhi, Oman's Oil and Gas Minister signed the agreement on behalf of the Sultanate's government, while Ali bin Hamil al-Ghaith, chairman of Shadeed Steel Company's board signed for his side.
Nassir bin Khamis al-Gashmi, Oil and Gas Ministry undersecretary told Oman News Agency (ONA) that the company will set up a steel factory whose first phase costs US $ 350 million. The factory's production capacity will hit 720,000 tons of molds per year.
He added two American and German companies will transfer technology and provide the project with required equipment. He said this project is the first of its kind in the world. He added that the strategic location of Sohar Port will enhance the product competitiveness. He noted that the project will consume 1.4 million cubic meter of gas per day over a period of 20 years.