Oman’s tissue manufacturing sector is set for a major expansion following a new strategic partnership signed at ProPaper 2026 in Dubai. Keryas Paper Industry LLC has entered into a memorandum of understanding (MoU) with Al Karama Hypermarket Group to construct a 20,000 metric tonnes per annum (MTPA) tissue manufacturing plant.
The upcoming facility will be located in Phase 7 of Sohar Industrial City in Oman. With a proposed investment of approximately $12 million, the project is expected to be the first of its kind in this segment in the sultanate. The facility will be developed through a special-purpose joint venture company, Sohar Paper Products LLC, co-owned by Keryas Paper Industry LLC—which operates a 150,000 MTPA kraft paper mill—and Al Karama Hypermarket Group, an established regional retailer operating 15 hypermarkets across Oman.
Speaking at ProPaper 2026 in Dubai, Al Karama Group Managing Director Abdul Nasser says, “With our longstanding relationship with Keryas Group in Oman across the retail and packaging industries, we are confident of completing the project within the planned timeframe. This will be achieved despite the challenges currently facing industries across the GCC due to ongoing geopolitical tensions.”
Mohammed Omer Ali Al Hosni, CEO of Keryas Group, comments, “With our proven expertise in the paper manufacturing sector, this diversification represents an important step in expanding our product portfolio and customer base. It will strengthen our ability to offer comprehensive paper and packaging solutions to customers across the GCC market.”
The proposed facility is expected to commence commercial operations by the end of 2027. The plant will be equipped with advanced tissue manufacturing machinery and technology from Taiwan, incorporating modern production capabilities to support efficient and high-quality manufacturing. Indian firm C2C Consultancy will undertake the engineering and design activities for the project.
The establishment of Sohar Paper Products LLC marks a strategic step towards expanding Oman’s tissue manufacturing capabilities, strengthening local industrial production, and supporting the growing demand for tissue and paper-based products across Oman and the wider GCC region.
