Sohar Aluminium has signed an agreement with Synergies Castings for the delivery of aluminium to a wheel manufacturing plant that will be built in the Sohar Industrial Estate adjacent to Sohar Aluminium premises. Construction of the USD100 million plant is scheduled to begin in the coming months with production expected to start in 2020.
At full capacity, Sohar Aluminium will supply more than 24,000 tonnes of aluminium per year which will be used to produce aluminium alloy wheels for automobiles. The wheels will be supplied directly to automobile manufacturers around the world. Once fully operational, the plant will employ 500 direct jobs and produce 2.5 million wheels annually.
CEO Said Al Masoudi said: “A central component of Sohar Aluminium’s strategy is to promote and support the growth of downstream aluminium industries within the Sultanate. With this agreement in place, we will meet our goal of supplying 60% of our hot metal production to downstream partners. We are offering them proximity to raw materials, a significant value proposition that provides our downstream customers with a distinct energy cost advantage.”
The alloy wheel segment is estimated to hold the largest share in the global aluminium downstream usage market. In 2017, the automotive wheel market was worth an estimated USD32 billion and is projected to reach USD50 billion by 2025. With increasing international demand for aluminium wheels, this project will further develop the manufacturing industry in the Sultanate of Oman.
Synergies Castings Ltd is India’s leading non-ferrous component company, manufacturing four-wheeler alloy wheels, aluminium castings, and plastic components. The company supplies aluminium wheels to most international automobile makers including General Motors, Ford, Chrysler, Honda, Toyota, Tata Motors, Mahindra and Fiat.