Tuesday, July 8th, 2008

First aluminium ready for export

SOHAR Aluminium’s first shipment of 21 tons of standard ingots has been loaded aboard a Mersk feeder ship, ready for export to Hong Kong.

It is the first export of locally-produced metal since the Sohar Aluminium smelter began operations on 11 June 2008 and is yet another major milestone for the state-of-the-art facility located at Sohar Industrial Estate.

“This first export is right on schedule and is a clear demonstration that our smelter is destined for a smooth and successful start-up over the next six months,” said Sohar Aluminium’s Operations General Manager Mr Michel Huot.

“While 21 tons is a relatively small amount compared to our annual capacity of 350,000 tons, it is an excellent start for the Sultanate’s first smelter and our brand new, mostly-Omani workforce.”

The shipment contains 21 ‘stacks’ of P1020A, each weighing one ton, and has been purchased by a Hong Kong-based manufacturer of high quality kitchen utensils.

“We have an ongoing metal off-take agreement with Rio Tinto Alcan so, through their international customers, Sohar Aluminium metal will be exported from Sohar across the world to be manufactured into an impressive array of aluminium products,” Mr Huot said.

Sohar Aluminium celebrated the beginning of production on 11 June, when the smelter’s first hot metal was successfully produced. Full production is expected to be achieved in December 2008, once all 360 cells are fully operational.

Of its annual 350,000 tons, the company will export approximately 140,000 tons from Sohar Industrial Port. The remaining 210,000 tons will be sold to local companies that have been formed to create a new downstream aluminium industry.

“Already we have commitments for 68,000 tons per year from two downstream partners – SAG and Oman Aluminum Processing Industries Ltd (OAPIL),” said Sohar Aluminium Chief Executive Mr Tony Kinsman. “We also have a Memorandum of Understanding with another local company, Future Cables, to purchase 30,000 tons. All three companies will fabricate products from our liquid metal, including electrical rods, cables and conductors.

“Developing a thriving downstream industry has been a major part of our strategic planning and I am delighted that we are fast heading towards our goal. Many people have worked very hard over the past two years to set this industry up and to welcome these companies onboard is extremely satisfying.”