First project in the Sino-Oman Industrial Park in Duqm SEZAD marks the opening of Duqm Hongtong Piping Factory
October 25, 2021
Duqm - October 25, 2021
The Special Economic Zone at Duqm (SEZAD) celebrated today the opening of Duqm Hongtong Piping Factory, under the patronage of Eng. Yahya bin Khamis Al Zadjali, In-Charge of Managing the Operations of Special Economic Zone at Duqm. The ceremony was attended by Su Wei, CEO of Wanfang Oman Company, the executive management of Hongtong Duqm Piping Company, Weihai Hongtong Piping, project’s partner and representatives from SEZAD and the Special Economic Zones and Free Zones (OPAZ).
The first-of-its-kind factory in Oman stands as the first project in the Sino-Omani Industrial Park in Duqm. The factory produces non-metallic Reinforced Thermopolyethlene Pipes (RTP), which are mainly used for oil and gas industry and specifically for the collection and transfer of hydrocarbon fluids through the piping networks. At the initial stage, the factory’s products will serve the local market, while afterward these Omani-made products will be promoted and supplied to other regional and international markets in Asia, Africa, America and Europe.
General Manager of Duqm Hongtong Piping Company, Dr. Shao Longnan, pointed out: “We are pleased to be the first in the Sultanate to bring this business, which meets the increasing demand for the Reinforced Thermopolyethylene Pipes in Oman and the region. We selected to set up the project in Duqm as a promising economic destination as well as to benefit from the competitive advantages offered by the business environment in the Sultanate. On the other hand, this project will serve transferring and exchange technologies from China to Oman for it will thrive the oil and gas industry with our products and contribute to the In-Country Value through the training and offering job opportunities”.
Speaking on the occasion, Eng. Yahya bin Khamis Al Zadjali, In-Charge of Managing the Operations of Special Economic Zone at Duqm, stated, "This factory marks one of the main projects in the Chinese-Omani Industrial Park in Duqm, which will play a significant role in meeting the demand for this product by the various economic projects in the zone and oil and gas companies operating in the concession areas. In addition, the project will contribute to strengthening partnership and trade relations between Omani companies and their international counterparts worldwide. Further, it will contribute to thriving the Sultanate’s economy by attracting foreign investments to the country and promoting Duqm as a promising economic and industrial hub in the Sultanate”.
Commenting on the project’s contribution to enriching the local added value in the Sultanate, Dawood bin Suleiman Al Farsi, Partner and General Manager of Technical and Marketing Affairs, explained: “As a contribution to the Sultanate’s In-Country Value process, the company pays a great attention towards developing locals and employing Omanis in various technical and administrative jobs, with the company currently records 17% Omanisation, while it seeks to increase the rate to 30% during the years 2022-2023.
“The company introduced a number of initiatives and various business opportunities for SMEs in the Sultanate by signing a number of memoranda of understanding and training with these establishments to be a non-exclusive agent for the installation of our products for customers. As well, there is also a discussion on the possibility of manufacturing steel connector parts for factory-produced tubes,” Al Farsi stated.
Built over an area of 60,000 sqm, the factory is designed to be capable of producing around 700 km of the “4” and “6” inches Reinforced Thermopolyethylene Pipes (RTP) annually at this phase. However, Duqm Hongtong Company is conducting a further study to provide new products to meet the requirements of oil and gas companies. Such products will have a significant impact and are expected to contribute in saving effort, operational and maintenance cost as well as promoting new production techniques.