The ceremony was held with the presence of a number of government dignitaries from Oman and China and representatives from shareholders, investors, stakeholders and potential customers, a press statement said.
At the initial stage, the factory’s products will serve the local market and afterwards these Oman-made products will be promoted and supplied to other regional and international markets whenever required.
Built over an area of 60,000 sq m, the factory is designed to be capable of producing around 1,200km of reinforced thermopolyethylene pipes annually with the first batch of products expected by the second quarter of 2020. The final products will be manufactured as per the technical specifications of the Petroleum Development Oman (PDO) and the American Institute of Petroleum.
This first-of-its-kind project in the sultanate came in response to the increasing local and international demand for such non-metallic pipes that could be used for oil and gas industry and specifically for the collection and transfer of hydrocarbon fluids through the piping networks.
Speaking on the occasion, chairman of Weihai Hongtong Pipe said that one of the most important considerations behind their investment in Oman is to transfer and exchange technologies and to benefit from the competitive advantages offered by the business environment in the sultanate. “The prime geographical location of Duqm, close to the GCC and African markets, and the sultanate’s customs agreements with many countries overseas was a good reason to bring our investment in Oman.”
General manager of Duqum Hongtong Piping Co, Dr Shao Longnan, said that the construction of the production plant is planned to start later this month and expected to last for approximately 10 to 12 months.