Al Maha acquires 45pc of Al Hael Ceramics Company
CONSTRUCTION NEWS
Al Maha Ceramics, one of the largest ceramic tiles manufacturers in Oman, has announced the acquisition of a 45% stake in Al Hael Ceramics Company.
As part of the transaction Al Maha will operate Al Hael for a period of five years, with a possibility of extending for another five years, thereby allowing Al Hael to benefit from Al Maha’s extensive experience in the production and sales of tiles.
In return Al Maha will receive OMR120,000 ($312,095) as a service fee during the first two years and in subsequent years it will be entitled to 10% of the net profits.
Combined capacity of 24m sq m
Al Maha and Al Hael will have a total combined capacity to produce over 24 million sq m of porcelain and ceramic tiles. It will become one of the largest tiles produces in the GCC and the only producer of porcelain tiles in Oman. It will therefore be in a favourable position to serve Oman and the GCC demand for ceramic and porcelain tiles.
Al Maha plans to start producing its first tiles at Al Hael factory in November 2022. The factory is expected to create over 300 jobs and will support Oman’s Vision 2040 of diversifying Oman’s economic activity.
Al Maha, founded in 2006, produces around 6 million sq m of tiles annually and export its tiles to over 15 countries.
Tiles and porcelain
Al Hael is the largest manufacturer of tiles and porcelain in Oman with a capacity to produce up to 18 million sq m of tiles annually. Al Hael’s manufacturing plant was completed in 2019 with an investment of around OMR40 million.
The factory has state-of-the-art manufacturing facilities and its equipment has been purchased from the leading Italian equipment manufacturer, SACMI. Al Hael is able to produce tiles of a large variety of sizes including the largest sizes in demand by the market.
The GCC market of floor and wall tiles is estimated to grow at an annual rate of 6% between 2022-2028 CAGR and reach 328 million sq m and $4.1 billion in revenues by 2028. The market demand in Oman for tiles is currently estimated to be around 40 million sq m per annum and valued at around $550 million. Oman’s tile market is expected to grow to 65.5 million sq m by 2028 and generate revenues of $1 billion.-- TradeArabia News Service
