Raysut Maldives Cement JV Formed; Acquisition of LafargeHolcim Stake Completed
Oman’s biggest 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 the Maldives, and a new joint venture - Raysut Maldives Cement Pvt. Ltd. – has been formed.
The new entity with the 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 is 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 the 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 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 new geography to its strategic global investment plan.
“Our foray into the Maldives will help drive self-sufficiency of cement in the Maldives, which currently is predominantly an import market. Raysut is looking at adding local value in the 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 the Maldives will be facing with cement players from India, Indonesia and Malaysia,” said Acting Deputy Group CEO, Mr Salim Ahmed Alawi Al Ibrahim.
“The acquisition followed by the development of the new JV will cement Raysut’ s position further as an emerging global cement player with a significant overseas appearance in markets of the Middle East and East Africa, said RCC GCEO, Mr Joey Ghose. He said 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.