Keryas, Al Karama plan USD 12M tissue mill to secure packaging supply chains
Through jointly owned Sohar Paper Products LLC, the partners will build the proposed 20,000-tonne-per-year facility, targeting commercial operations by late 2027.
OMAN – Keryas Paper Industry and Al Karama Hypermarket Group signed a MoU for a USD 12 million tissue mill in Phase 7 of Sohar Industrial City, a move intended to secure domestic packaging supply chains and expand paper-based consumer formats across the Gulf region.
The partners will develop the proposed 20,000-tonne annual facility through their jointly owned company, Sohar Paper Products LLC, with commercial operations targeted for the end of 2027.
The partners described the proposed mill as the first of its kind in this segment in Oman, aiming to replace imported tissue products with locally manufactured alternatives.
Vertical Integration Connects Kraft Paper to Consumer Packaging
Keryas currently operates a 150,000-tonne annual kraft paper mill producing fluting and testliner.
These are essential materials for corrugated packaging used in shipping and retail display.
By adding tissue production, the company extends its manufacturing expertise from industrial packaging substrates into consumer-facing paper products.
Mohammed Omer Ali Al Hosni, chief executive of Keryas Group, said the company would contribute its paper manufacturing expertise to the new venture.
The tissue investment forms part of a diversification strategy aimed at offering a more comprehensive range of paper and packaging solutions to GCC customers.
Retail Backing Secures Demand for Packaging Output
Al Karama operates 15 hypermarkets in Oman, providing a guaranteed retail channel for the mill’s output.
Abdul Nasser, managing director of Al Karama, said the group’s existing relationship with Keryas in retail packaging provided a foundation for the investment.
He expressed confidence in completion on schedule despite geopolitical tensions in the GCC.
This retail integration allows the partners to control packaging design, shelf presentation and supply reliability for their own private-label brands, reducing dependence on third-party suppliers for high-volume consumer staples.
Machinery and Engineering Support Production Quality
Machinery and tissue manufacturing technology will be sourced from Taiwan, intended to support product quality and efficient production. India’s C2C Consultancy will carry out engineering and design.
Establishing local tissue manufacturing provides significant supply chain advantages. Al Karama can secure consistent stock for its hypermarket network, avoiding shipping delays and import cost fluctuations.
For Oman’s packaging sector, the project adds domestic converting capacity, supports employment, and advances industrial diversification under Vision 2040.
It reduces reliance on imported goods for a high-volume category used across households, hospitality and healthcare, strengthening regional packaging supply resilience.
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