MUSCAT, JUNE 3 - Oman Fisheries Company (OFC), the Sultanate’s fisheries sector flagship, has unveiled plans for a series of multimillion dollar investments in support of its ambitions to evolve into one of the largest integrated fisheries and seafood processing firms in the region.
The list includes plans for the establishment of a commercial fishing and boat-building yard, and investments in a new high-end seafood canning project, as well as a specialised facility for the processing of value-added fish products.
Some of these initiatives were conceived by Tanfeedh — the National Programme for Enhancing Economic Diversification — with the aim of fuelling employment growth and SME development.
According to officials, the new projects are an integral part of an ambitious strategy to restructure Oman Fisheries Company into as many as five different divisions with OFC as a parent entity.
“In order the complete the value chain model and enhance the growth of the company, Oman Fisheries is embarking on an ambitious growth model whose immediate success would be reaped within the next five years,” said Dr Khalid Mansoor al Zadjali, Chief Executive Officer.
“The new business growth plan is devised to restructure OFC into five separate wings: The Commercial Fishing & Boat Building Yard; Seafood Canning Project; Oman Fisheries Company (Parent Holding Co); Integrated Value Added Plant; and Horizontal diversification under Al Ameen Stores & Refrigeration Co,” Dr Al Zadjali stated in the Management Discussion & Analysis Report accompanying the company’s financial report for the year ended March 31, 2017.
Also envisioned are plans to augment the capabilities of OFC’s Al Ameen Stores & Refrigeration Co.
This entails investments in new super storage facilities, ultra-modern logistics facilities, and the establishment of ancillary business units (ABU) such as a corrugated cardboard box manufacturing plant among other initiatives to strengthen the value chain.
An initial investment of around RO 4 million is envisaged in the development of a commercial fishing fleet — billed as a Tanfeedh Monitored Project designed to ensure a steady supply of feedstock for OFC’s retail sales and processing plants.
Oman Food Investment Holding Co (OFIC), the government food sector development arm, is a key stakeholder in this initiative, alongside the Ministry of Agriculture & Fisheries.
The company is also looking to rope in overseas strategic partners for investment support and technical know-how. As many as 200 new jobs will be created when the project is fully operational by the year 2021.
Also of significance is OFC’s plan for a Boat Building and Repair Yard to be established in line with proposals mooted by Tanfeedh.
As with the Commercial Fishing Fleet initiative, the proposed yard will also be backed by OFIC and the Ministry of Agriculture & Fisheries as stakeholders. Qurayat, Sur, Duqm and Salalah are identified as potential sites for the establishment of the yard.
Equally ambitious is OFC’s plan to set up an ultra-modern seafood cannery plant integrated with fish meal and fish oil processing facilities.
The objective behind this investment — strongly advocated by Tanfeedh — is to position Oman on the world map as a favoured destination for value added fish products, according to the CEO.
Investment in Phase 1 is estimated at RO 28.8 million based on a 50:50 debit-equity mix, while a further RO 12.4 million will be added in Phase 2. The venture, which is also backed by OFIC and the Ministry, is expected to come into operation by 2020.
Separately, OFC plans to set up a state-of-the-art seafood processing plant catering solely to value added products. Investment in the venture, which has the backing of OFIC and potentially some strategic overseas investors as well, is estimated at RO 2.5 million.
Conrad Prabhu
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