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  • By Lynda Kiernan-Stone, Global AgInvesting Media

Oman’s Salalah Mills Investing $19 Million to Build Flour Mill

Oman’s Salalah Mills, located in Raysut, is investing US$19.4 million to build a flour mill that will make the company the largest flour miller in the Sultanate, and one of the largest among the Gulf Cooperation Council (GCC) countries.

The project, which will have a capacity of 600 tons per day, was approved by the company’s board of directors on August 27 and is scheduled to be operational by 2017.

The construction of the mill will enable the company to take advantage of prior investments to increase its grain storage capacity and its increased rate of wheat throughput at the Port of Salalah.

Half of the project’s total cost will be funded through the issuance of new shares to be issued in the first quarter of 2016 at the price of OMR0.750 per share, while the remaining half will be funded through facilities provided by the machinery supplier.

Salalah Mills’ current milling capacity is 1,500 tons per day according to the Oman Dairy Observer, with the company reaching 94% capacity utilization in 2014 and 100% utilization in the first half of 2015.

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