State-owned Oman Cement will increase cement production by 1Mta in 2009 after expanding its plant, the minister of commerce and industry told reporters on Monday.
"Oman Cement will produce an extra 1Mta starting 2009 to increase supply in the market as they are extending the plant," Makboul bin Ali bin Sultan said.
The new unit will take total capacity to 2.87Mta from the current 1.87Mta year.
"Prices of building materials will come down with additional supply in the country," he added.
Oman Cement’s production is likely to hold steady this year at about 1.8Mt due to higher prices of imported clinker, which is used in making cement, Chief Executive Jamal al-Hooti told Reuters last week.
Hooti also said the firm was in discussion with its government owner over raising prices of cement and otherwise may face a second fall in annual profit.