Keryas Paper Industry LLC and Al Karama Hypermarket Group have signed a memorandum of understanding (MoU) to establish a tissue manufacturing facility in Sohar, Oman, with an estimated investment of USD 12 million.
The proposed plant, located at Sohar Industrial City, Phase 7, will have a production capacity of 20,000 metric tonnes. Commercial operations are expected to commence by the end of 2027.
The project will be developed through Sohar Paper Products LLC, a special-purpose joint venture owned by the two companies. Keryas Paper Industry operates a kraft paper mill with an annual capacity of 150,000 metric tonnes, while Al Karama Hypermarket Group operates 15 hypermarkets across Oman.
The facility is expected to be the first of its kind in this tissue manufacturing segment in Oman.
Abdul Nasser, Managing Director of Al Karama Group, said: “With our longstanding relationship with Keryas Group in Oman across the retail and packaging industries, we are confident of completing the project within the planned timeframe. This will be achieved despite the challenges currently facing industries across the GCC due to ongoing geopolitical tensions.”
Mohammed Omer Ali Al Hosni, CEO of Keryas Group, said: “With our proven expertise in the paper manufacturing sector, this diversification represents an important step in expanding our product portfolio and customer base. It will strengthen our ability to offer comprehensive paper and packaging solutions to customers across the GCC market.”
The plant will be equipped with tissue manufacturing machinery and technology from Taiwan. C2C Consultancy, India, will undertake engineering and design activities for the project. The companies expect the investment to expand domestic tissue manufacturing capacity and serve demand for tissue and paper-based products in Oman and across the GCC.