Oman’s largest cement manufacturer, Raysut Cement Company (RCC) confirms closing deal of acquiring 75% of LafargeHolcim’s cement terminal at Thilafushi Island.
Raysut’s confirmation has come on 14 October, Wednesday, of the large scale acquisition in Maldives that will see to the cement terminal’s complete rebranding.
Moreover, the acquisition confirms formation of a new joint-venture; Raysut Maldives Cement Private Limited.
Furthermore, the joint-venture’s remaining 25% ownership will remain under State Trading Organization (STO) much like the previous stake composition.
Raysut’s acquisition and the subsequent rebranding falls under the massive plan of terminal capacity expansion from 75,000 tons per annum to 200,000 tons per annum.
Moreover, this translates to more than 100% expansion of the terminal’s current capacity.
Statement from Raysut notes the acquisition “opens a corridor of trade between Oman and Maldives” which will not remain exclusive to cement industry, but prospective investment portfolio expansions in other directions as well.
“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,” comments Sheikh Ahmed Yousef Alawi Al Ibrahim, Chairman of RCC Group.
Moreover, Sheikh Al Ibrahim adds the company experiencing dire economic straits due to the global spread of Covid-19 virus.
Meanwhile this takeover marks a new phase for the Muscat Stock Market (MSM), listing 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.
-RCC GCEO, Mr. Joey Ghose
Additionally, Mr Ghose notes the acquisition and the formation of the new JV will cement Raysut’s “position further as an emerging global cement player” with significant overseas presence in Middle East and East Africa already.
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
-Acting Deputy Group CEO, Mr. Salim Ahmed Alawi Al Ibrahim