(MENAFN- Muscat Daily) Salalah Mills Co plans to build a new RO7.5mn flour mill with a production capacity of 600 metric tonnes (MT) per day.
'Based on a feasibility study the board of directors of the company decided to add a new flour mill with production capacity of 600MT per day. The project cost will be about RO7.5mn. The new mill is expected to commence production in the first quarter of 2017' Ahmed al Dhahab CEO of Salalah Mills said in a filing with the Muscat Securities Market (MSM) on Sunday.
He said the new expansion project comes within company's strategy to promote it as the biggest flour mill in Oman and one of the largest flour mills in GCC and exploit earlier investment in increasing grain-storage capacity and higher discharge rate of wheat at the Port of Salalah.
He stated that 50 per cent of the cost of the new project will be financed by a facility from the machinery supplier and the remaining 50 per cent by issuing new shares.
The board of directors also approved to raise the company's paid-up capital by ten per cent through the issuance of preferential shares in the first quarter of 2016 at the price of 750bz per share.
The current production capacity of Salalah Mills is 1500MT per day. The company said it reached 94 per cent utilisation last year and 100 per cent utilisation in the first half of the current year.
'The new expansion will provide flour for growing demand in the domestic and export markets. The flour which is sold under the brand name Al Khareef is known for it is premium quality' Dhahab added.
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