3 days ago
Sohar Freezone signs land lease agreement with Matrix Alloys (FZC) LLC for low-carbon ferrochrome plant
Suhar – SOHAR Freezone has signed a land lease agreement with Matrix Alloys (FZC) LLC, a leader in low-carbon ferrochrome production, to build a state-of-the-art, environmentally friendly ferrochrome plant. This initiative strengthens Oman's role as a regional hub for sustainable industrial development and supports the goals of Oman 2050 Net Zero commitment to reduce carbon emissions and diversify the economy.
The project, with an investment of USD 10 million, will occupy 2.2 hectares within SOHAR Freezone and aims to produce 20,000 tons annually of micro-carbon and low-carbon ferrochrome. The facility will meet stringent purity and sustainability standards demanded by key markets including Europe, Japan, South Korea, and India. Utilizing an electric-based production process that avoids coal and heavy-oil pollution, the plant will significantly reduce its environmental footprint and operate with zero waste gas or wastewater emissions. Furthermore, it seamlessly fits into Oman Vision 2040, promoting sustainable industrialization and encouraging foreign investment to drive long-term economic growth and environmental stewardship. The first phase is expected to be operational by 2026.
Mr. Bailin Yi, Chairman of Matrix Alloys (FZC) LLC, said, 'Launching our first international ferroalloy plant in SOHAR Freezone offers us a strategic location with excellent infrastructure, market access, and competitive, stable, and low-cost energy essential for the energy-intensive smelting processes. We are committed to delivering premium low-carbon ferrochrome products that support global stainless-steel producers and promote a cleaner industrial future.'
Mohammed Al Shizawi, Acting CEO of SOHAR Freezone, stated: 'This agreement underscores the trust that international investors place in SOHAR's integrated industrial ecosystem. Matrix Alloys is bringing advanced, sustainable manufacturing capabilities to our ferroalloy cluster, aligning perfectly with our vision to attract clean technology investments and strengthen SOHAR Freezone's position as a competitive gateway for global trade.'
Matrix Alloys will benefit from SOHAR's proximity to raw material suppliers and customers, as well as direct port access, and a supportive regulatory environment that reduces operational costs. The plant also plans to secure ISO 14001 and ISO 14067 certifications to ensure full carbon emission traceability and compliance with international standards such as CBAM, EcoLeaf, and K-ETS.
As SOHAR Freezone approaches full capacity in its initial development phase, this agreement marks a significant milestone in expanding Oman's green industrial base and attracting technology-driven industries to the region.
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About SOHAR Port and Freezone
SOHAR Port and Freezone is one of the world's fastest-growing integrated industrial and logistics hubs, strategically positioned to connect businesses to the world and facilitate trade across diverse sectors. This significant mega-project, a collaboration between ASYAD Group & the Port of Rotterdam, offers a comprehensive range of services, including logistics, petrochemicals, metals, and the region's first dedicated agro terminal.
With over 20 years of operation, SOHAR has become the primary gateway for Oman's import and export activities, contributing 2.1% to the nation's GDP and creating nearly 42,000 direct and indirect jobs. The SOHAR Freezone enhances operational efficiencies through synergies in green manufacturing, logistics, and trade. Currently, land occupancy for both phase one and phase two has reached 66%.
As of 2024, SOHAR Port has achieved a remarkable throughput of 75.4 million metric tons, rise in roll-on, roll-off (RORO) operations. SOHAR Port is a multifunctional port driving innovation and efficiency in Oman's logistics, marine services, and trade sectors, committed to sustainable development and advanced technology. This modernization aligns with the economic diversification objectives outlined in Oman's Vision 2040.
