Oman Cement Company has obtained two loans totalling more than OMR 25.77 million from BankMuscat as it looks to finance a series of upcoming modernization projects and revamp its ageing plant.

The first loan worth OMR 14.45 million will be used to finance its kiln upgradation project and pollution control equipment improvements. The company announced in March that this would be carried out by two Chinese companies.

The second loan, worth OMR 11.47 million will pay off an existing loan of the same amount the company currently has with Bank Sohar. A statement released to the Muscat Securities Market explains that these loans hopefully reduce the cost of financing its projects.

Mr Deepak Dikshit CFO of Oman Cement said that the loan to pay off the Bank Sohar loan will be paid back in semi annual instalments over 5 years with a moratorium period of 6 months. We are going for two loans. One is to pay off the Bank Sohar loan and the other one is to finance our kiln upgradation project. We have finalized these loans with BankMuscat.

Mr Dikshit said that the loan for the modernization works has a two-year moratorium and is also payable in semi annual instalments over a period of effectively seven years.

Anticipating completion by February 2012, the company will be employing CNBM International Engineering to carry out OMR 11.15 million contract to modernize the 29 year old plant extending its life by another 25 years and increasing its capacity from 2,000 tonnes per day to 2,700 tonnes per day.

Oman Cement Company also signed OMR 3.3 million deal with Sino Environment Engineering Company to modernize the company's pollution control systems to ensure that emissions fall below 10 mg per nm3 with work expected to be completed by the end of January 2012.

(Sourced from Muscat Daily)