Oman Ce­ment plans $212m project in Duqm SEZ

Oman Daily Observer - - BUSINESS - BUSI­NESS RE­PORTER MUS­CAT, DEC 8

Oman Ce­ment Com­pany (OCC) — the Sul­tanate’s first ce­ment man­u­fac­tur­ing firm — has an­nounced that it plans to go ahead with the es­tab­lish­ment of an in­te­grated ce­ment project in the Duqm Spe­cial Eco­nomic Zone (SEZ) with an in­vest­ment of around $212 mil­lion (equiv­a­lent to around RO 84 mil­lion).

This fol­lows Board ap­proval for the ven­ture, the partly state-owned listed com­pany said in a fil­ing to the Cap­i­tal Mar­ket Au­thor­ity (CMA) on Thurs­day.

“The project im­ple­men­ta­tion process is be­ing fi­nalised by the com­pany and share­hold­ers will be in­formed of the progress in due course,” the CEO said in the fil­ing.

Ac­cord­ing to mar­ket sources, Oman Ce­ment is go­ing it alone in the devel­op­ment of a ce­ment plant in Duqm in a de­par­ture from an ear­lier strat­egy to set up the project in joint ven­ture with Ray­sut Ce­ment Com­pany, the na­tion’s largest ce­ment pro­ducer.

Ray­sut Ce­ment, for its part, re­cently an­nounced an am­bi­tious ex­pan­sion plan, cen­tring on the ac­qui­si­tion of a Kenyan ce­ment plan with an in­vest­ment of around $100 mil­lion. The pro­posed ac­qui­si­tion is part of a wider push into East and Cen­tral Africa, var­i­ous me­dia re­ports said.

Ray­sut Ce­ment is also in the process of set­ting up a grind­ing unit in So­ma­liland and Mo­gadishu, So­ma­lia with a Dubai-based part­ner. The com­pany is also in ad­vanced dis­cus­sions to ac­quire var­i­ous ce­ment pro­duc­ers in Uganda and Dji­bouti. Plans are also afoot to build a one mil­lion tonne per an­num ce­ment plant in Ber­bera, So­ma­lia with con­struc­tion work set to start as early as Jan­uary 2019.

Rusayl-based Oman Ce­ment Com­pany has sub­stan­tially en­hanced its ce­ment pro­duc­ing ca­pac­ity to 3.6m met­ric tonnes per an­num, up from an ini­tial ca­pac­ity of 600,000 met­ric tonnes, over the years. The ca­pac­ity ex­pan­sion, which has boosted the com­plex to three kilns and five ce­ment mills, is in line with ro­bust growth in ce­ment de­mand from both do­mes­tic mar­ket and the wider Gulf re­gion.

In a de­par­ture from an ear­lier strat­egy to set up the project in joint ven­ture with Ray­sut Ce­ment Com­pany, Oman Ce­ment is go­ing it alone in the devel­op­ment of the ce­ment plant in Duqm

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