State-owned Oman Cement will increase cement production by 1 million tonnes per year in 2009 after expanding its plant, the minister of commerce and industry told reporters on Monday.
"Oman Cement will produce an extra 1 million tonnes per year starting 2009 to increase supply in the market as they are extending the plant," Makboul bin Ali bin Sultan said.
The new unit will take total capacity to 2.87 million tonnes per year from the current 1.87 million tonnes per year.
"Prices of building materials will come down with additional supply in the country," he added.
Oman Cement's production is likely to hold steady this year at about 1.8 million tonnes due to higher prices of imported clinker, which is used in making cement, Chief Executive Jamal Al Hooti told Reuters last week.
Hooti also said the firm was in discussion with its government owner over raising prices of cement and otherwise may face a second fall in annual profit. (Reuters)
Follow Emirates 24|7 on Google News.