South African stainless steel manufacturer Steelmor and Oman-based Teejan Group have signed an agreement to set up a stainless steel joint venture in Freezone Sohar in Oman, according to local media reports.
The OMR 50 million (approximately $130 million) project will be the first major stainless steel plant of the Sultanate of Oman. The new steel joint venture, which will produce stainless steel pipes, plates, flanges and fittings for the petrochemical industry, is expected to have an annual output capacity of 1 million mt. While Steelmor will have a 75 percent stake in the new company, the remaining 25 percent will belong to Teejan. The reports state that the joint venture's products will be exported to overseas markets, including Gulf countries, the US and Europe.
Raw material will be supplied from several different countries including Sweden and China, though with most of it coming from South Africa.