Deepak Oman Invests $100 Million in Salalah Chemical Plant to Boost Downstream Industry
Deepak Oman Industries LLC is investing $100 million in a new chemical plant in Oman's Salalah Free Zone, producing sodium nitrite and sodium nitrate for pharmaceutical and fertilizer sectors. Utilizing ammonia from OQ Base Industries, the 70,000 tonnes/year facility aims to significantly boost Oman's downstream chemical industry. This project, creating 150 jobs, supports industrial diversification and value-chain localization, aligning with Oman Vision 2040 by anchoring higher-value manufacturing domestically.
A significant $100 million investment by Deepak Oman Industries LLC, a local subsidiary of India's Deepak Fertilisers & Petrochemicals Corporation Ltd (DFPCL), is set to transform the industrial landscape of Oman's Dhofar Governorate, specifically within the Salalah Free Zone. This project aims to cultivate a robust chemicals-based industrial ecosystem and enhance the nation's downstream manufacturing capabilities.The initiative follows a crucial agreement between Deepak Oman Industries and OQ Base Industries (SFZ) SAOG (OQBI), a subsidiary of the OQ Group. This long-term, ten-year renewable off-take agreement secures the supply of ammonia from OQBI's integrated petrochemicals complex to Deepak Oman Industries. Utilizing this feedstock, Deepak Oman will establish a new plant to produce approximately 70,000 tonnes per year of sodium nitrite and sodium nitrate. These specialized chemicals are destined for critical applications in the pharmaceutical and specialized fertilizer sectors, signaling Oman's entry into a higher-value segment of the chemical chain.According to Ali al Lawati, Chairman of OQ Base Industries, this direct connection between facilities anchors a more valuable part of the chemical supply chain within Oman. The project is projected to create around 150 direct employment opportunities, fostering specialized skills development in Salalah and fortifying the groundwork for future downstream industries, increased SME involvement, and more resilient domestic supply chains. Ihsan al Jandal of OQBI emphasized that this agreement aligns with Oman Vision 2040, promoting industrial diversification, value-chain localization, and sustainable growth within the Sultanate’s petrochemical sector, thereby strengthening strategic partnerships and enhancing in-country value.
