Raysut Cement acquires majority stake in Maldives plant
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, following which it has established a new joint venture —
Raysut Maldives Cement Pvt Ltd.
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 tonnes per annum, by more than 100 per cent in future to over 200,000 tonnes 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.
“The Maldives acquisition will boost Raysut’s profitability and production to full capacity, particularly of its plant in the Wilayat of Salalah in the Sultanate of Oman. Raysut Cement Company this year faced economic conditions, including the economic conditions
GROWING FOOTPRINT: 75 per cent takeover of cement terminal at Thilafushi Island to increase market presence in the Indian Ocean country
that resulted from the global spread of the COVID-19 virus,” said Shaikh 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 Cement 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 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 per cent 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 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,” added Acting Deputy Group CEO 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,” stated 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.