Mubasher: Meethaq Islamic Banking, a subsidiary of Bank Muscat, announced signing an agreement with SAFE Alloys LLC to establish a low carbon ferro chrome production plant at Sohar Free Zone.

The plant, which will be the first of its kind in the Middle East, will stand at a value of approximately $14 million and be situated on an area of 56,000 square metres, according to a statement.

The first phase will create around 100 jobs, while the second phase, expected to operate by 2022, will provide another 150 jobs and stand at an investment of $18 million.

Deputy CEO of Islamic Banking at Bank Muscat Sulaiman Al Harthy stated: “The project is one of the most important and first of its kind in the sultanate aiming at attracting foreign investments to [Oman], as well as enhancing the position and location of the Sohar Free Zone as an economic and investment destination in the region.”

The project will have the capacity to produce 16,500 tonnes of low carbon ferro chrome per annum, which will be exported to Europe, Korea, Japan, India, and the US.

The demand for low carbon ferro chrome is increasing as the aerospace and automotive industries use about 1 million tonnes per annum, according to a statement.