Oman Cement inks contracts to modernise plant machinery

Oman Cement Company SAOG, the Sultanate’s second largest cement producer, has signed contracts for the upgrade of its pollution control equipment, as well as the modernisation of one of its oldest clinker plants.

In a disclosure notification to the Muscat Securities Market (MSM), the company said it had inked a deal with Sino Environment Engineering Development Co Ltd (SEPEC) of China for the refurbishment of the existing pollution control machinery at its Line 1 facility.

As part of the contract, valued at $8.58 million, the company will induct the latest emission control technology into the operation of its Line 1, targeting emission control levels of less than 10mg/nm3. The project, due to be completed by January-end 2012, is a key part of ongoing efforts to transform Oman Cement into an “eco-friendly” plant, the company said.

A second contract signed by Oman Cement entails the overhaul of its 29-year-old Line 1 clinkerisation unit at a cost of $28.99 million. China’s CNBM International Engineering Co Ltd, which has established a number of cement plants in the region, will undertake the project.

When completed by end-February 2012, the project will not only lead to the modernisation of Line 1, but also boost the unit’s clinker output from the present 2,000 tonnes per day to 2,700 tonnes per day. Besides making the unit energy-efficient, the project will also extend the plant’s operational life by a further 25 years.

India’s ERCOM Consulting Engineers Pvt Ltd has been appointed as consultant for the projects. “After implementation of the two projects, Line-1 of Oman Cement Company will be the latest, modern energy efficient and most eco-friendly plant”, the statement added.

The Chairman of Oman Cement Company SAOG signed the respective contracts with the General Manager of Sino Environment Engineering Development Company, and Executive Vice-President of CNBM International Engineers Pvt Ltd.

Earlier this year, the Ministry of Commerce and Industry ordered Oman Cement to pay RO 2.246 million as ‘environmental compensation’ to villages affected by the company’s operations. It follows a decision by the Council of Ministers dated December 9, 2010, requiring Oman Cement to pay 50 per cent of a ‘social’ contribution totalling RO 4.492 million as compensation to the affected villages.

Oman Cement reported a profit after tax of RO 25.038 million for the year ended December 31, 2010, versus earnings of RO 24.232 million during the previous year, entailing an increase of 3.33 per cent.

The company’s new production line of a rated capacity of 4,000 tonnes per day of clinker is expected to be completed during the first quarter of this year.