OMAN – RAYSUT CEMENT PLANS TO INVEST UP TO $700MN FOR EXPANSION

As part of its
long-term plan to achieve the total production capacity of 20mn tonnes per
annum, Oman’s largest cement producer Raysut Cement Company is planning to
invest between US$500mn-US$700mn in the next three-four years on expansions.

Raysut Cement last
Thursday signed land lease and port terminal services agreements with Port of
Duqm Company for building a new grinding unit in Duqm, with an investment of
US$30mn.

Raysut Cement’s CEO
Joey Ghose said, “Our goal is to raise our capacity to 20mn tonnes by 2025 and
eventually be a solid partner in infrastructure development and nation building
in the markets where we are present.”

To achieve 20mn
tonnes per annum manufacturing capabilities, Raysut Cement has been working on
a number of initiatives, including acquiring existing cement companies in
Africa and building greenfield facilities in India and Africa.

To materialise all
the expansion projects in India and Africa, the company is likely to invest
around US$500mn- US$700mn in the next three to four years, Ghose said. ‘We will
be using a mix of debt and equity to finance our expansion plans. We are
discussing with a number of financial institutions, mostly Omani and some
international, for securing the funding,’ he said.

Revealing expansion
plans on various locations in India and Africa, Ghose said, “We are looking at
a greenfield plant in Kenya. We are also looking at a probable acquisition in
Uganda, and also a greenfield plant in South Africa. We are also exploring
possibilities in Madagascar.” He expressed confidence that the Salalah-based
company would be able to add additional 10mn tonnes capabilities from these
four locations.

Ghose further said
Raysut Cement is also working on plans to enter India’s cement market through a
tie-up or joint venture. ‘We are definitely looking at India, but it is
challenging to enter the Indian market alone. So, we are looking for partners
there with whom we can work. Raysut Cement is looking at reputed and
well-established partners within the Indian cement industry. However, we are
also open to other options and are currently talking to various players for
this.”

Speaking about the timeline for finalising various expansion projects, he said the company is going to finalise the deal in India within next 12 months, and in Africa, at least one deal is expected to be completed in six months time.https://menafn.com/1099042916/Oman-Raysut-Cement-plans-to-invest-up-to-700mn-for-expansion