New aluminium applications drive sales in Oman and abroad

Oman

Omar Al Balushi, managing director of Oman Aluminium Rolling Company (OARC), talks to The Energy Year about how the company has expanded its customer base, its new capabilities included in its product offering and how it expects its customer base to evolve amid current global uncertainties. OARC is an aluminium producer in Oman.

How has Oman Aluminium Rolling Company expanded its customer base, and what new capabilities has the company included in its product offering?
Our customer base has grown significantly over the past year, with around 70% of our clients now located in the US, while the remaining 30% is spread globally. We are working to diversify and balance this split by tapping into new regions, with our products now reaching markets around the world.
OARC is a rolling mill, and one of our key products is the hot band, with a monthly output of around 10,000 tonnes. This product is then transformed into foils, fin stocks and other downstream aluminium goods.
We’ve recently expanded into new applications such as aluminium cans, which are currently undergoing trial phases with customers. On the production side, April 2025 marked a historic high for us, with 14,400 tonnes produced in a single month, our highest to date.
We are pushing to reach 15,000 tonnes monthly and are focusing on optimising our product mix. Shifting from hot-mill to cold-mill output increases margins, so we are gradually increasing cold-mill production. We are also diversifying our product line, particularly in HVAC fin stock.
We now supply to major players such as Daikin, Lennox and Trane. Our products have been used in prominent infrastructure projects, such as the Riyadh Metro and Oman Airports. Moreover, we successfully commissioned our coating line and are now entering the commercial production phase, which might be worked out by the end of 2025.

Are you expanding your facility to support these developments?
We are not broadening the product category, but within the same range, we are tailoring products to specific customer requirements. Different alloys, gauges and mechanical properties allow us to address varying applications, from construction to foil products. These enhancements are driven by small-scale capital investments aimed at optimising our operations.
For example, we are working with our OEM to reduce the thickness produced by our casters from 16 millimetres to 14 millimetres. This minor adjustment results in significant gains further down the production line. These plant optimisations support our goal to increase total annual output to 150,000 tonnes, up from our previous high of 142,000 tonnes.

How do you expect your US customer base to evolve amid current global uncertainties?
We’ve experienced a mixed impact. While some US customers have reduced their orders due to new import tariffs, others, particularly in fin stock, have increased their demand. We treat our clients as partners and offer support where needed, even absorbing additional costs to help them manage slowdowns.
At the same time, geopolitical shifts, such as tariffs on Chinese aluminium, have opened new opportunities for us in Canada and Mexico. Both markets are becoming more serious prospects, especially as they seek reliable, tariff-free supply chains. This dynamic has helped us expand our footprint beyond the US.
Also, India and Asia more broadly are now key targets. Europe, however, remains a difficult market due to carbon border adjustment mechanisms, higher import duties and fierce competition from Turkish producers. That said, we do still serve some European clients, often via their US operations, which allows us to maintain a presence without direct market penetration.

How are you addressing Turkish competition?
Our position in the aluminium value chain is different from Turkish or other regional players. While smelters such as Ma’aden focus on primary aluminium and automobile applications, OARC operates downstream, producing hot band, fin stock and building and construction sheets. In the Middle East, our competition includes GARMCO and some Chinese and Indian producers.
We believe our versatility is a strength. Our products are inputs for multiple markets and sectors. For instance, safety regulations now require double-sided aluminium panels in modern construction, which is driving up demand for our offerings.

What is OARC’s role in Oman Vision 2040 and the development of Sohar as a steel and aluminium hub?
We are a vital part of Oman Vision 2040’s goal to build an integrated steel and aluminium cluster in Sohar. As a rolling mill, we serve as the bridge between upstream smelting and further downstream manufacturing. We supply the raw material needed for foil mills, sheet coating lines and even components for solar panels and aluminium packaging.
With the global solar-panel market still heavily reliant on Chinese imports, there is a significant opportunity to localise production, which we enable by offering high-quality aluminium input that downstream producers can use in Oman.

How is OARC progressing on its sustainability and decarbonisation goals?
OARC has taken a proactive and structured approach to sustainability and decarbonisation. In 2023, we published the OARC Decarbonization Strategy with targets aligned with Oman Vision 2040, Oman Net Zero and the Intergovernmental Panel on Climate Change, including a 35% reduction in GHG emissions intensity by 2030.
By 2024, OARC had implemented 18 energy-saving projects, achieving a 6.28% reduction in carbon dioxide equivalent emissions. That same year, OARC earned ASI Performance Standard certification for adherence to global ESG standards across key areas such as emissions, resource management, labour rights and business integrity.

What’s your roadmap for 2025?
Our goals for 2025 include reaching our production target of 150,000 tonnes, expanding cold-mill output and fully commissioning the coating line. To support this, we’re investing in asset integrity through preventive maintenance and system upgrades. Our facility uses a combination of OEMs: Hazelett for casters, Danieli for the mill and others for slitters.
This requires robust co-ordination, especially for spare parts. That’s why we’ve started engaging Omani SMEs to reverse-engineer parts. In some cases, they’ve successfully replaced overseas suppliers. We provide engineering drawings and support them through testing and trials. This not only localises supply but adds value to the national economy.

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