Salalah Mills Co is planning to set up a macaroni plant in Ethiopia to target the large Ethiopian market and neighboring African markets according to Muscat Daily an Omani newspaper.
The report said that Salalah has signed a memorandum of understanding (MoU) with a giant Ethiopian industrial and trading group to set up a plant in Ethiopia.
‘The MoU was signed with a giant trading and industrial group in Ethiopia to set up a macaroni plant, which includes transferring one of the long cut production lines from Salalah Macaroni Factory to Ethiopia, in addition to installing a new short cut production line. The feasibility study is expected to be finalized by the end of the first quarter of this year’, Salalah Mills said in the company report submitted to the Muscat Securities Market.
It said the new project in Ethiopia will be the base for the additional food projects because of the size of the Ethiopian market and neighboring markets. ‘The transfer of one production line from Salalah will reduce the amount of equipment depreciation and improve the competitive position of Salalah Macaroni Factory’, the company added.
The merger of Salalah Mills and Salalah Macaroni Co was completed in December last year. Salalah Macaroni Factory has four production lines, with a total capacity of 123,000 metric tonnes per year.
In December, Salalah Mills’ board also approved the establishment of an import and distribution company in the UAE and Togo.
Salalah Mills reported total revenues of RO52mn for the year ended December 31, 2018, while its export revenues representing over 50 percent of total revenues.
According to the report, the core business of Salalah Mills is the milling of wheat and the production of different types of flour and by-products.
Through several expansions of milling capacity, the company said it achieved its goal to be the biggest flour mill in Oman and one of the leading flour mills in the region. Salalah Mills sells its products primarily in three geographical areas: Oman, Africa, and other Asian countries, the report reads.