Oman’s largest cement manufacturer, Raysut Cement Company (RCC), has announced that it has closed its deal with LafargeHolcim, acquiring 75% of the company’s cement terminal at Thilafushi Island in Maldives, and that a new joint venture – Raysut Maldives Cement Pvt. Ltd. – has been formed.
The new entity with State Trading Organisation (STO) of Maldives owning 25%, has plans to expand the terminal’s capacity (currently 75 000 tpy) by more than 100% in future to over 200 000 tpy.
This acquisition opens a corridor of trade between Oman and the 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 initiated 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 tough economic conditions, including the economic conditions that resulted from the global spread of Covid-19,” said Sheikh Ahmed Yousef Alawi Al Ibrahim, Chairman of RCC Group.
The terminal will be owned and operated by the RCC-STO joint venture.
The takeover of the terminal in the Indian Ocean country marks a new phase for the Muscat Stock Market listed Raysut since it will be adding a new geography to its strategic global investment plan.
“Our foray into the Maldives will help drive self-sufficiency of cement in the country, 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 a 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 being a South Oman based player 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.
The Maldives investment is in line with the corporate strategy of Raysut to expand its footprint globally and be a partner in developing countries where it will invest with established local partners.
Read the article online at: https://www.worldcement.com/asia-pacific-rim/19102020/raysut-cement-company-acquires-75-of-lafargeholcim-maldives-cement-terminal/