This was revealed by Ghose Jotirmoy Pratul Krishna, Chief Executive Officer of Raysut Cement, in a filing to the Muscat Securities Market (MSM) yesterday. All procedures and transfer of ownership were completed on Sunday, May 19, 2019, the CEO stated.
The acquisition of Sohar Cement Factory LLC, with a capacity of over 1.7 million tonnes of cement per annum, is set to bolster Raysut Cement’s ability to better serve the Omani market and in particular the northern market of Oman. It also boosts Raysut Cement’s production capacity to 4.7 million tonnes of cement per annum, the official noted.
This acquisition represents the initial phase of Raysut Cement’s planned expansion strategy to strengthen the company’s value and shareholders’ equity.
Prior to its acquisition, Sohar Cement was the Sultanate’s third cement plant after Raysut Cement and Oman Cement. The facility was developed by a partnership between Sohar Cement, holding 70 per cent of the equity and UAE-based Fujairah Cement Company, owning the remaining 30 per cent of the equity. Sohar Cement features a cement-grinding unit with a capacity of around 240 tonnes per hour and aims to help add to domestic production capacity and reduce the nation’s dependence on imports of cement.
The plant is located within Phase 7 of Sohar Industrial Estate, one of the several industrial parks administered by the Public Establishment for Industrial Estates (Madayn) around Oman.
Source Link: www.omanobserver.om