Sigma Capital

03-06-2025

Lease Agreement Inked for Low-carbon Ferrochrome Plant in Sohar Freezone

Source: MIST

(ONA)-


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. The project has an investment value of RO 3.85 million (USD 10 million).

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 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.

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.