Salalah Mills Company, which owns and operates Oman’s biggest flour milling complex in Dhofar Governorate, has disclosed to shareholders that it has signed a financing agreement with Alizz Islamic Bank covering a sum of RO 10 million for the financing of a new industrial bakery project at Khazaen Economic City in Barka.
The announcement came in a filing to the Capital Market Authority on Wednesday. Salalah Mills CFO Ravi C Tripathi said the tenure of the loan is about 10 years.
Earlier this year, publicly-listed Salalah Mills revealed plans to set up a flour-based food processing hub at Khazaen with an initial investment of RO 12.5 million.
Company Chairman Ahmed Abdullah al Rawas stated in the Q1 Directors’ report that the new investment is in line with Salalah Mills’ strategy to grow its flour-based food processing industrial base. Envisaged in the first phase of its implementation are an industrial bakery and multiple production lines for frozen and semi-baked pastries.
Located at Raysut Industrial City, Salalah Mills has a flour milling capacity of 1500 metric tons (MT) per day, effectively making it the largest miller in the Sultanate of Oman. Complementing this capacity is a complex of silos that can hold up to 161,500 MT of wheat, which is also the largest of its kind in the country. In addition, the company owns three unloading machines at Port of Salalah with a discharge capacity of 1500 MT per hour.
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