Keryas Paper Industry LLC and Al Karama Hypermarket Group have signed a memorandum of understanding (MoU) to establish a tissue manufacturing facility with an annual capacity of 20,000 tonnes at Sohar Industrial City, Oman.
The proposed investment is approximately US$12 million, with commercial operations expected to begin by the end of 2027.
The agreement was signed at ProPaper 2026 in Dubai on October 26. The facility will be located in Phase 7 of Sohar Industrial City and developed through Sohar Paper Products LLC, a special-purpose joint venture jointly owned by the two Omani companies.
The partners describe the project as the first of its kind in this tissue-manufacturing segment in Oman.
Keryas Paper Industry already operates a kraft paper mill with an annual capacity of 150,000 tonnes. Al Karama Hypermarket Group operates 15 hypermarkets across Oman, giving the joint venture both industrial manufacturing experience and an established retail distribution network
The partnership is intended to diversify Keryas’s product portfolio and broaden its customer base, while enabling the group to provide more comprehensive paper and packaging solutions across Oman and the wider GCC.
Mr. Abdul Nasser, Managing Director of Al Karama Group and Mr. Mohammed Omer Ali Al Hosni, CEO of Keryas Group.
Machinery and engineering
The proposed facility will use tissue manufacturing machinery and technology sourced from Taiwan. India-based C2C Consultancy will undertake the project's engineering and design activities.
Commenting on the agreement, Mohammed Omer Ali Al Hosni, CEO of Keryas Group, said: “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.”
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.”
The project is expected to expand Oman's tissue manufacturing capacity and support demand for tissue and paper-based products across Oman and the wider GCC region. Commercial operations are targeted for the end of 2027.
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.
