Pen-G to manufacture key chemical compounds for antibiotics in Sohar facility

Muscat: Sohar Freezone and Penicillin General Integrated Industrial Company (Pen-G) have celebrated the signing of a land lease agreement which will see the creation of a pharma project within the freezone.

Penicillin General Integrated Industrial Company will establish a factory for the manufacture of Penicillin-G and 6-APA, key chemical compounds in the most widely used group of antibiotics. Under the agreement, Penicillin General Integrated Industrial Company will also build an Effluent Treatment Plant (ETP) to treat wastewater and reuse it in their process, which will boost sustainability efforts.

Mohammed Al Kharusi , Chairman of the Penicillin General Integrated Industrial Company, said, “Penicillin General Integrated Industrial Company is wholly Omani-owned and our investment in Sohar Port and Freezone represents a strong commitment from the company and its investors, with the support of the National Bank of Oman (NBO) to the future of Oman’s economy. As part of the priorities identified within Vision 2040, the growth of a thriving, dynamic and diverse industrial sector within Sohar Port and Freezone brings together the capability of several high-quality Oman-based suppliers. The new manufacturing and wastewater treatment plants will engage local businesses at every stage of the supply chain, generate in-country value and conserve valuable natural resources which will fuel the responsible growth of the industry in the country.”

Omar bin Mahmood Al Mahrizi- CEO of Sohar Freezone - DCEO Sohar Port, said, “The growth of the Sohar pharma cluster is an important step forward in the development of the port and freezone with far-reaching benefits to the local community, both in terms of investment and access to the finished product. This pharma project, the second project after our animal vaccination facility, will add significant value to all three of our objectives. We are confident that the plant operated by Penicillin General Integrated Industrial Company will provide the impetus for further investment in the pharmaceutical industry and the potential for Sohar to become the main hub for the industry in the region.”

The project will be built on 100,000 sqm of land, which will take approximately two years to complete in total, it is estimated that 3025 tonnes per annum (TPA) of raw materials will be imported by Omani companies to supply the pharmaceutical plant and ETP, carrying a value of OMR 5 million and driving growth across several sectors of the local economy in Sohar and the Al Batinah North governorate.

Offering a wealth of benefits to investors, Sohar Freezone allows investors to lease warehouses and commercial offices, as well as an abundance of land available for new construction. Companies based within the complex can benefit from 0% import or export duties and 0% personal income tax, as well as the opportunity for 100% foreign ownership, and the use of dedicated One-Stop-Shop service to expedite the registration and licensing process to allow businesses to commence trading.