(MENAFN - Muscat Daily) Oman Flour Mills (OFM) is planning to set up a new production facility in Sohar and increase the capacity of its poultry and industrial bakery subsidiaries in an effort to increase its market share locally and boost exports in the region.
OFM, which currently operates an 800-tonnes-per-day flour mill, will set up a new 500-tonnes-per-day facility in Sohar, adjacent to the silos being constructed by the government under the strategic food reserve programme.
''Our current flour mill is ageing and with strategic food reserves being built up in Sohar, setting up a new mill in Sohar was an automatic choice. The initial wheat milling capacity planned is 500 tonnes per day, with the capability of expansion to 2,000 tonnes per day. The company will continue to strengthen and develop the core businesses of flour and feed,'' said Ali Habaj, CEO of OFM, in the company's management report released on Sunday.
''Our marketing policies are geared to increase our share in the local flour and feed markets. With the re-introduction of government subsidy, the entry of flour to the local market from UAE and other countries has reduced, thereby increasing the market share of the company. In the local market, our flour sales have increased and we expect to continue increasing our market share. New export markets are being considered as traditional markets have become saturated,'' said Habaj.
According to the report, OFM is also looking to venture into the management of silos for strategic food reserves for which the company will receive a management fee.
OFM's subsidiary Modern Poultry Farms (MPF), which currently produces in excess of 100mn table eggs per year, is also planning to increase production capacity by 40 per cent. MPF's expansion will be in a new location in Ibri and is expected to ready by end of 2013.
Manal Mohammad al Abdwani, chairperson of OFM, said in the company report that the response to products of the new industrial bakery, which started trial production in February this year, has been positive and sales are increasing each month.
She said, ''Our market reach is being expanded and we plan to cover the whole country by September this year. This would also coincide with the completion of phase two of the industrial bakery, which includes variety and frozen products. We are also in talks with international franchise chains and UAE supermarkets to sell our bakery products.