Oman’s Raysut Cement Co has announced that its has acquired a 75 per cent stake in LafargeHolcim’s cement terminal at Thilafushi Island in the Maldives. As a result, it has formed a new joint venture, Raysut Maldives Cement Pvt Ltd.
The new entity, with the State Trading Organisation (STO) of Maldives owning 25 per cent, has plans to expand the terminal's capacity from 75,000tpa to over 200,000tpa. The terminal will be owned and operated by the RCC-STO joint venture entity.
"The Maldives acquisition will boost Raysut Cement’s profitability and production to full capacity, particularly of its plant in Salalah," said Sheikh Ahmed Yousef Alawi al Ibrahim, chairman of Raysut Cement Group.
This acquisition opens a corridor of trade between Oman and Maldives, not only in the cement industry but also in other areas, according to the company.
"Our foray into the Maldives will help drive self-sufficiency of cement in the Maldives, which currently is predominantly an import market. Raysut Cement is looking at adding local value in the 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 Joey Ghose, CEO.
