Oman-based Raysut Cement Company has acquired a 75 per cent stake in a cement terminal owned by LafargeHolcim at Thilafushi Island in the Maldives.
Following the closing of the acquisition deal, Raysut said its new joint venture with State Trading Organization (STO) of Maldives will help boost its profitability and production.
The new entity – Raysut Maldives Cement Private Limited – has plans to expand the terminal’s capacity, which currently stands at 75,000 tonnes per annum, to over 200,000 tons per annum.
According to Raysut, 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 Company Group Chairman Sheikh Ahmed Yousef Alawi Al Ibrahim said it was 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 at Salalah in Oman, Raysut Cement Company this year faced economic conditions, including the economic conditions that resulted from the global spread of the Covid-19 virus,” he added.
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 since it will be adding new geography to its strategic global investment plan.
CEO Joey Ghose said: “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,” he noted.
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Source URL: Google News
