Oman Chlorine, the Sultanate's largest chemical plant, has projected a 66 per cent surge in sales by value for this year and is considering the feasibility of adding a chlorine liquefaction plant or caustic flaking unit, according to its financial controller and acting marketing manager.

PB Khanna did not provide any other details about the expansion plans. The company produces hydrochloric acid, sodium hydroxide solution and sodium hypochlorite, all essential chemicals extensively used in various industries. The plant has not undergone any expansion since its establishment in the beginning of 1998 at the Sohar Industrial Estate, 200km north of Muscat.

The sales turnover was 41,148 tonnes at a value of RO1.75 million in 2001 against 12,683 tonnes valued at RO522,872 in four months of production in 2000 (commercial production started only in September 2000). In the first quarter of this year sales reached 13,594 tonnes at RO595,543 and the company expects turnover for the whole of the year to be 63,740 tonnes for a value of RO2.88 million. Oman Chlorine exports around 65 per cent of its products to GCC states.

The plant was designed and built by the Swedish company Cellchem-AB, part of the world famous Akzo Nobel Group and is located on a 40,000 sq m plot. The plant employs state-of-the-art membrane cell technology supplied by Oxytech of the US.

"Our current production level is around 90 per cent of the plant's capacity," said Khanna. Monthly capacities for the products are hydrochloric acid (3,666 tonnes), sodium hydroxide solution (2,625 tonnes) and sodium hypochlorite (300 tonnes).

Oman Chlorine's main promoters are National Trading Company, Walid Mohammed Azhari. The company's shares are spread over 500 parties for a total of RO9.86 million.

Petroleum services companies are some of the major clients for Oman Chlorine's hydrochloric acid while companies including Takreer, Gasco and Oman Refinery are major users of caustic. Other buyers have been Halliburton Oman and Dowell Schlumberger and Adnoc, both of the UAE.

"Our products are import substitutes and save foreign exchange in a big way. We also earn foreign exchange by way of exports and we have employed Omanis to fill 35 per cent of positions at the plant," said Khanna while discussing the company's impact on the national economy.

Only salt among the main raw materials is imported. Electricity and water is available in plenty locally. But electricity charges are too high in Oman compared to GCC countries, Khanna said. The company had taken up the matter with the government and was hopeful of receiving a positive response in the near future, he said.

About salt imports, Khanna said the company did not foresee any problems in supplies. "Currently we are importing through UAE ports and once the port in Sohar is operational, transportation costs will be reduced in a big way," he added.

But he described as a major problem the transportation of the company's products to distant destinations as they were in liquid form requiring special tanks.

Khanna was upbeat about Oman Chlorine's overall prospects, saying they were very good for the near and long terms.