Chicago based building materials maker USG will invest USD 60 million in Oman over the next two years as part of a partnership with the Zawawi Group.

The firm said that USG will acquire 55% stake in an Omani gypsum quarry and form a 50-50 JV with the Oman based firm to build a low cost wallboard plant in the Gulf state.

The partnership with the Zawawi Group will enable USG to capitalize on growing demand for building materials products in the Middle East and India.

Mr Chris Griffin executive VP of operations for USG said that “We believe that we can enhance our success in India by securing the strategic gypsum rock source in Oman and cost effectively shipping products to India, thereby accelerating USG wallboard penetration in the region.”

The quarry venture will develop infrastructure with mining operations slated to start in the third quarter of 2013. The Phase II will be a manufacturing JV to build and operate a new wallboard plant close to the quarry with plans to begin production in the Q4 of 2013.

Source - Arabian Business.com

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