The Board of Directors met on Thursday the 27th of August and decided the followings:
- Based on Feasibility study conduct by Expert House, the Board of Directors decided to add a new flour mill with a production capacity of 600 Metric Tons per day. The project cost will be about RO 7.5 million. The new mill is expected to commence production in the first quarter of 2017.
- To raise paid capital by 10% through the issuance of right preference to shareholders in the first quarter of 2016, at the price of RO 0.750 per share.
The new production expansion project comes within company’s strategy to promote the company as the biggest flour mill in Oman and one of the largest flour mill in GCC countries and exploit the company earlier investment in increasing grain storage capacity and higher discharge rate of wheat in the Port of Salalah. 50% of the cost of the new project will be financed by facility from the machinery supplier and the balance 50% by issuing new shares.
The current production capacity of Salalah Mills Company is 1,500 Metric Ton per day. The company reached 94% utilization last year and 100% utilization in the first half of the current year. The new expansion will provide flour for growing demands in the domestic market and export markets, which is sold under the brand name "Al Khareef." Which is known for it is premium quality.
Ahmed Alawi Al - Dhahab
CEO
30/08/2015
