Oman Zinc to establish $50mn industrial complex in Sohar

12/01/2026 04:21 AST

Sohar Port and Freezone on Sunday signed a $50mn investment agreement with Oman Zinc Company to develop a Zinc Ash Recycling Industrial Park on a 10-hectare site within Sohar Freezone.

Designed to convert steelmaking residues into valuable industrial materials, the project strengthens Sohar Port and Freezone's position as a regional hub for sustainable metals processing and circular economy manufacturing.

The industrial complex, which is proposed to be delivered in phases, will process zinc ash and electric arc furnace (EAF) dust to produce up to 10,000 tonnes per year of refined zinc ingots and 50,000 tonnes per year of rubber-grade zinc oxide. These products will supply high-growth downstream industries across the GCC, Southeast Asia, Europe, and Africa, supporting applications in galvanising, alloys, rubber, batteries, and specialty chemicals.

The project leverages the integrated infrastructure of Sohar Port and Freezone. Raw materials will be imported and handled through Sohar Port from local and international suppliers, enabling the creation of a comprehensive value chain linking global shipping lines with the processing, storage, manufacturing, and export operations within the Freezone.

Lin Feng, Chairman of Oman Zinc Company, said, "Sohar Port and Freezone stands out as the strategic gateway for our international expansion, offering strong logistics connectivity, world-class infrastructure, and direct access to high-growth markets. This investment reflects our confidence in Sohar Port and Freezone as a premier destination for sustainable industry, where innovative recycling meets long-term profitability and regional leadership."

Raid al Rubaiey, CEO of Sohar Freezone and Deputy CEO of Sohar Port, said, "This investment demonstrates the strength of Sohar Port and Freezone's integrated ecosystem and the confidence international partners place in Oman as a base for advanced, sustainable manufacturing. By linking zinc recycling to global shipping routes, we are building new value chains, supporting diversification, and advancing national resource efficiency."

The investment reinforces Sohar Port and Freezone's growing metals cluster and its role as an export-oriented manufacturing hub. By diverting by-products from disposal and converting them into high-value export materials, the facility will reduce the environmental footprint of steelmaking. It will also stimulate wider demand across logistics, maintenance, and industrial services.

Aligned with Oman Vision 2040, this new project advances resource efficiency, accelerates circular economy outcomes, and expands the nation's portfolio of sustainability-led industrial projects.

Sohar Port and Freezone is one of the world's fastest-growing integrated industrial and logistics hubs, strategically positioned to connect businesses to the world and facilitate trade across diverse sectors. With over 20 years of operation, Sohar Port and Freezone has become the primary gateway for Oman's import and export activities, contributing 2.6% to the nation's GDP and creating around 42,000 direct and indirect jobs.

Muscat Daily