The new manufacturing facility, which will have the capacity to produce 20,000 metric tonnes per year of tissue, will be developed through a special-purpose joint venture company, Sohar Paper Products LLC.Oct. 26, 2026 - Keryas Paper Industry LLC, in partnership with Al Karama Hypermarket Group, has signed a Memorandum of Understanding to establish a tissue mill at Sohar Industrial City, Phase 7, Oman.
The new manufacturing facility, which will have the capacity to produce 20,000 metric tonnes per year of tissue, will be developed through a special-purpose joint venture company, Sohar Paper Products LLC, jointly owned by Keryas Paper Industry and Al Karama Hypermarket Group.
Keryas Paper Industry is considered to be one of the largest producers of kraft paper in the Sultanate of Oman, where the company operates a 150,000 metric tonnes per year paper mill. The mill produces products such as fluting medium and test liner.
Al Karama Hypermarket Group is a leading retailer with 15 hypermarkets across Oman.
With a proposed investment of approximately USD 12 million, the project is expected to be the first of its kind in this segment in the Sultanate of Oman.
Speaking at Pro Paper 2026 in Dubai, Mr. Abdul Nasser, Managing Director of Al Karama Group, said, "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."
Mr. Mohammed Omer Ali Al Hosni, CEO of Keryas Group, commented, "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 begin 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 tissue manufacturing.
C2C Consultancy, India, will undertake the engineering and design activities for the project.
The establishment of Sohar Paper Products 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.
SOURCE: Keryas Paper Industry LLC, and Al Karama Hypermarket Group