Ociped is eager to get these projects (see list) into the implementation stage and has designed a mechanism to obtain the necessary approvals from the ministries and governmental departments on a fast track basis, says Sheikha Al-Farsi, marketing researcher.
The projects being pursued by Ociped are more modest in scale but take advantage of the Sultanate's good strategic location, excellent business infrastructure and government incentives and policies to support industrial investment.
Already some local and foreign investors have shown interest in some of the projects and negotiations are under way towards implementing them.
Ociped, set up three years back, has successfully undertaken the twin role of promoting the country as an investment location in key international target markets and facilitating investments through acting as a "one-stop-shop" and dealing with all aspects of statutory approvals, licenses etc.
Ociped's "one-stop-shop" role is defined in terms of a series of service delivery agreements with the approval awarding ministries so that investors' applications for all the necessary licenses, permits etc. can be dealt with within a standard and predictable time-scale, says Al-Farsi.
Ociped conducts conferences and seminars on the range and types of investment opportunities available in the Sultanate.
Organisationally, this marketing approach is followed up by the network of Ociped overseas agents who follow up both investment and export inquiries.
Ociped has 27 representatives in about 20 countries. It also conducts roadshows and exhibitions in targeted countries to promote investments and export of Omani products. As part of this programme, it is planning to hold roadshows in the US and Italy at the end of this year, says Amal Al-Aisri, marketing researcher.
The agency regularly receives enquiries about Omani products from abroad. Many companies have benefited from the leads provided by us, says Al-Aisri.
ed is claimed to be the first government organisation in the Sultanate to get the ISO 9002 certification.
Ociped works across all sectors of the Omani economy to promote projects which contribute to the development of the economy. While export-orientated manufacturing activity has considerable potential for Oman, there are a number of other sectors which the centre is actively promoting. These include the development of the Omani tourism products through hotel projects, theme parks and other recreational facilities and the development of sports facilities.
In addition, the centre is exploring the potential of developing new sectors such as software development, biotechnology and promoting the Sultanate as a transportation and distribution hub.
Below is a synopsis of the projects.
PVC Resins
Manufacture of polyvinyl chloride (PVC) resins and hydrochloric acid (HCL) (by-product).
Capacity: PVC- 100,000 tonnes per year (tpy) and HCL - 58,000 tpy.
Investment: $141.69 million.
Market: Demand growth for the product in GCC region looks promising. Setting up the PVC plant could encourage growth of plastic processing industry and vice versa.
Raw materials: Ethylene dichloride (EDC) or vinyl chloride monomer (VCM)
One of the main advantages of setting up a PVC resin manufacturing facility in Oman is the impetus it could provide to the growth of local plastic processing industries. The possibility of improving value addition by setting up a facility initially based on VCM as the raw material rather than based on EDC needs to be evaluated.
Molecular Sieves
Manufacture of high-performance molecular sieves of different types for use in natural gas treatment, petroleum refining, petrochemical industry, etc.
Capacity: 5,000 tpy.
Investment: $ 46.33 million.
Market: No current manufacturer in the region and the entire demand is met through imports. The GCC demand level projected by GOIC is only 45 per cent of the proposed capacity and therefore the product will have to be exported outside the GCC region.
Raw materials: Alumina, caustic soda, clays, waterglass, chemicals. Most of the raw materials can be sourced from the GCC region and may be available locally in Oman.
The product has applications in key industrial activities in Oman and GCC region including natural gas treatment, petroleum refining and petrochemical industries.
Porcelain electrical insulators
Manufacture of four types of porcelain insulators covering a range of low to high-tension applications.
Capacity: 3,000 tpy, equivalent to 8.2 million units of insulators.
Investment: $26.45 million.
Market: As per a GOIC report there is no other porcelain insulator manufacturing plant in the GCC region. Demand growth for the product in GCC region would depend on how soon the GCC power grid comes up.
Raw materials: Ball clay, china clay, feldspar, silica stone and glazing material.
One of the key success factors would be the ability to wean away market share from imports from Western countries, Japan and Asia.
Aluminium ladder fabrication
Manufacture of three types of aluminium ladders - step ladders, extension ladders and hinge or articulating ladders
Capacity: 240,000 units per year.
Investment: $10.66 million.
Market: The product is currently being used in Oman and GCC region and has widespread applications.
Raw materials: Aluminium coils, rung guides and hinges.
Goic estimates that the product has sufficient local demand in Oman and the GCC markets. [QQ]The project is not capital intensive and requires a mid-sized investment.
Recycled tyre materials
Manufacture of rubber crumb and steel wire through recovery from scrap automotive tyres.
Capacity: 5,050 tpy of rubber crumb in the form of granules; Steel wire: 3,500 tpy.
Investment: $6.57 million.
Market: Rubber crumbs can be used for low end use applications such as hose pipes, footwear, rubber mats etc.
Raw materials: Scrap tyres.
Raw material is locally available and technology is simple. An organised collection system for scrap tyres needs to be developed. The project could stimulate downstream industries based on rubber.
Leaf springs
Manufacture of different types of multi-leaf springs for automotive vehicles.
Capacity: 3,000 tpy.
Investment: $5.61 million.
Market: While there is no other leaf spring manufacturer in the GCC region, the depth of the replacement market for leaf springs needs to be assessed.
Raw Materials: Spring steel
The raw material is easily available. Setting up the project as a joint venture with an established leaf spring manufacturer would reduce the market risk. The project could be developed to cater to the potential replacement market in the GCC region.
Co-extruded foam core PVC sheets
Manufacture of foam core PVC sheets (3-19 mm thickness), free foam PVC sheets (3-15 mm thickness) and compact PVC sheets (1-20 mm thickness).
Capacity: 3,000 tpy based on three-shift operation.
Investment: $5.02 million
Market: As per Goic report, there is no other manufacturer in the GCC region. More detailed market estimation required to gauge realistic demand for the product.
Raw materials: PVC resins or recycled PVC.
PVC resin, the main raw material will become available locally if the proposed PVC resin manufacturing plant comes up in Oman. Till then, the plant could depend on imported raw material.
Establishing the brand and quality reputation in the market will be a key factor governing the success of the project.
Products from unsorted plastic waste
Manufacture of extruded plastic profiles and pallets that would find applications in fencing, protection barriers, plant containers, drainage gratings, outdoor furniture etc.
Capacity: 2,700 tpy based on three-shift operation.
Investment: $4.58 million.
Market: More detailed market estimation required to gauge realistic demand for the product.
Raw materials: Unsorted (mixed) thermoplastic waste.
Availability of plastic waste, the raw material, would not be a problem. The cost of collection of plastic waste needs to be compared to the cost of virgin plastic material to determine the competitiveness of the project. It may be possible to set up plants in different regions of the Sultanate.
Recycled aluminium alloys
Manufacture of aluminium-silicon alloy ingots of different grades using aluminium scrap as the main raw material.
Capacity: 6,856 tpy.
Investment: $4.32 million.
Market: 100 per cent export-oriented unit for GCC and other markets.
Usage pattern of recycled alloys versus the alloys made from virgin metal would need to be studied.
Raw materials: Aluminium scrap, silicon metal
The major advantage of setting up the plant in Oman is the availability of aluminium scrap and cheap power.
The cost of collection of adequate amount of scrap needs to be studied in greater detail during the feasibility study stage.
Setting up the project as a joint venture with an end user would reduce the market risk.
Acrylic bathroom products
Manufacture of acrylic baths and tubs.
Capacity: 72,000 units per year.
Investment: $4.19 million.
Market: The main markets for the products are hotels being constructed or refurbished and new housing construction in the GCC and Middle East regions.
Raw materials: Acrylic sheets, polyester resin, fibreglass roving, chalk filler.
The project could be of interest to an existing manufacturer of bathroom products/accessories, such as sanitary ware, etc.
Ferric chloride
Manufacture of ferric chloride (40 per cent solution) for use in water treatment, sewage treatment, etc.
Capacity: 6,000 tpy.
Investment: $3.9 million.
Market: There is no existing manufacturer of ferric chloride in the GCC region.
Current demand estimates for the GCC region account for almost 85 per cent of capacity
Raw materials: Chlorine gas, scrap iron, hydrochloric acid.
Low level of capital and labour required for the project. Availability of raw materials in Oman/GCC region.
Colour masterbatch
Manufacture of colour masterbatches to be used for colouring polymers that are produced through extrusion, moulding, etc.
Capacity: 746 tpy.
Investment: $3.80 million
Market: As per Goic there is adequate demand for colour masterbatch in the GCC region after considering existing regional manufacturers
Raw materials: Colour concentrate, low density polyethylene.
Long-term supply arrangements need to be tied up with local plastic manufacturers to ensure guaranteed off-take.
Mortise locks
Manufacture of mortise locks used as door closures
Capacity: 800 tpy, equivalent to one million units.
Investment: $3.91 million.
Market: The product is a commonly used item and is expected to have a good potential in [QQ]Oman and other GCC countries.
Raw materials: Iron (various forms), zinc, consumables (screws).
Relatively short project implementation period of around one year. Projections by Goic indicate sufficient demand in the GCC region.
