Oman’s Salalah Free Zone Company (SFZCO) has signed an agreement with Saudi Arabia’s National Steel Company to establish an iron products' manufacturing factory worth $500m (OMR192.3m) within the free zone.
On its Twitter account, SFZCO said that an agreement for the factory was signed between chief executive officer of SFZCO, Ali Tabouk, and chairman of National Steel Company, Sheikh Ahmed Al Shahin, in Riyadh.
Construction work on the factory — which upon operational commencement will create 500 direct jobs — will begin in Q1 2020.
The facility will manufacture iron products that can be used for the construction of commercial and residential buildings, bridges, factories, refineries, and gas stations.
#happening_now— Salalah Free Zone Co (@SFZCO) September 18, 2019
From Riyadh, the capital of Saudi Arabia, #Salalah Free Zone signs an SUA agreement to establish the largest complex of Iron Industries with a direct Gulf investment worth USD 500 million. pic.twitter.com/mlWBjtRgo0
Tabouk said the facility would produce 136,078 tonnes of iron products that would be used to manufacture refrigerators, generators, panels, and roofs.
He added that the establishment of the factory would reduce construction costs by 20%, adding that 65% of the factory's output would be exported to international markets.