Salalah Mills to build OMR4m-polypropylene bag project

10/08/2015 08:46 AST

MUSCAT: Salalah Mills Company has decided to build a project for manufacturing polypropylene bags with a capital expenditure of OMR4 million.

The project, with an installed capacity of 48 million bags per year, is expected to start commercial production by the end of next year, the company said in a stock market filing. “The project will be financed by facilities from equipment suppliers and term loans.”

Salalah Mills’ parent company has achieved a net profit of OMR2.84 million for the first half of the current year compared to OMR3.29 million for the first half of 2014, showing a fall of 13.6 per cent and the consolidated group profit for the first half of the year 2015 declined from OMR3.80 million to OMR2.73 million, showing a slump of about 28.1 per cent.

The total sales quantity by the parent company had increased by 6.3 per cent for the first half of the current year compared to the first half of 2014. The total sales value during the first half of 2015 was OMR33.6 million, showing an increase of about 3.7 per cent compared to the same period of 2014, due to the increase sales quantity.

Subsidiary company

Salalah Mills’ subsidiary company — Salalah Macaroni — has achieved sales turnover of OMR8.1 million for the first half of the current year compared to OMR10.8 million for the same period of last year, showing a decline of 25 per cent. The net profit made for the first half of 2015 was OMR228,000 compared to OMR821,000 for the first half of 2014, showing a fall of about 72 per cent, due to lower sales quantity and sales margin in African markets as a result of severe competition.

Times of Oman