Oman’s largest cement manufacturer, Raysut Cement Company (RCC), said in October that it has closed the deal of acquiring 75 percent 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 State Trading Organization (STO) of Maldives owning 25 percent, has plans to expand the terminal’s capacity, currently 75,000 tons per annum, by more than 100 percent in the 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.
“The Maldives acquisition will boost Raysut’s profitability and production to full capacity, particularly of its plant in 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 the Covid-19 virus,” said Sheikh Ahmed Yousef Alawi Al Ibrahim, Chairman of RCC Group.
The terminal will be owned and operated by the RCC-STO joint venture entity.
“Our foray into 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% 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.
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.