75 per cent takeover of cement terminal at Thilafushi Island to increase market presence in the Indian Ocean country
MUMBAI, Oct. 26, 2020 /PRNewswire/ -- Oman's largest cement manufacturer, Raysut Cement Company (RCC), said it has closed the deal of acquiring 75 per cent of LafargeHolcim's cement terminal at Thilafushi Island in Maldives, and a new joint venture - Raysut Maldives Cement Pvt. Ltd. - has been formed.
The new entity with State Trading Organization (STO) of Maldives owning 25 per cent has plans to expand the terminal's capacity, currently 75,000 tons per annum, by more than 100 per cent in future to over 200,000 tons per annum.
This acquisition opens a corridor of trade between Oman and Maldives not only in the cement industry with Raysut Cement but also in other areas which will benefit both economies. Raysut cement are proud to have opened this new economic relationship.
"The Maldives acquisition will boost Raysut' s profitability and production to full capacity, particularly of its plant in State of Salalah in Sultanate of Oman, Raysut Cement Company this year faced economic conditions, including the economic conditions that resulted from the global spread of the Covid-19 virus," said Sheikh Ahmed Yousef Alawi Al Ibrahim, Chairman of RCC Group.
The terminal will be owned and operated by the RCC-STO joint venture entity.
The takeover of the terminal in the Indian Ocean country marks a new phase for the Muscat Stock Market (MSM) listed Raysut since it will be adding a new geography to its strategic global investment plan.
"Our foray into Maldives will help drive self-sufficiency of cement in Maldives, which currently is predominantly an import market. Raysut is looking at adding local value in Maldives by installing production facilities to ensure there is at least 40% local content. This will also make the market more competitive from a price point which will have its positive impact on infrastructure development in the island nation," said RCC GCEO, Mr. Joey Ghose.
"This is a milestone investment for Raysut since the cement major will be pitching into a market supplied currently by other players from South Asia. It is also a significant move reinforcing its strategy to diversify from only being a South Oman based player to grow into a global player in the cement industry, RCC in Maldives will be competing with cement players from India, Indonesia and Malaysia" said Acting Deputy Group CEO, Mr. Salim Ahmed Alawi Al Ibrahim.
"The acquisition followed by the formation of the new JV will cement Raysut' s position further as an emerging global cement player with significant overseas presence in markets of Middle East and East Africa, said RCC GCEO, Mr. Joey Ghose.
He said the move to invest in Maldives is in line with the corporate strategy of Raysut to expand its footprint into global markets and be a partner in developing countries where it will invest with established local partners.
Mr. B.S. Rajan
Group Head, Mergers and Acquisitions.
Mobile: +971 503737014
Notes to editors:
About Raysut Cement Company S.A.O.G:
Raysut, headquartered in State of Salalah in Sultanate of Oman, is a leading cement company in the Middle East, with clinker and cement manufacturing assets in Oman, Yemen and the UAE. Raysut has 3.6 million tons of integrated cement manufacturing capacity in Salalah.
Raysut Group has a combined aggregate output capacity of over 10 million tons of Cement per annum from all its regional and international manufacturing plants.
For more details, visit: https://raysutcement.om/
About Pioneer Cement Industries:
Pioneer Cement Industries was incorporated in 2004 and is part of Oman based Raysut Cement Company SAOG. Pioneer operates a state-of-the-art integrated cement plant with a capacity of 1.5 million ton of cement. The plant is located 45km north of Ras al Khaimah and about 1 hour from Dubai, UAE. The company is one of the market leaders in the UAE and also exports its product to regional markets. The plant produces high quality cement which meets British, European and American standards.
For further clarifications contact:
Mathewson Brand & PR Consultants