A new joint venture – Raysut Maldives Cement Pvt. Ltd. – has been formed, with the State Trading Organization (STO) of Maldives owning the remaining 25%.
RCC says it plans to expand the terminal’s capacity, currently 75,000 tons per annum, by more than 100% in future to over 200,000 tons per annum.
The company adds that the 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,” said Sheikh Ahmed Yousef Alawi Al Ibrahim, chairman of RCC Group. "Raysut Cement Company this year faced economic conditions, including the economic conditions that resulted from the global spread of Covid-19."
The terminal will be owned and operated by the RCC-STO joint venture.
The takeover of the terminal in the Indian Ocean country marks a new phase for the Muscat Stock Market listed Raysut since it will be adding a new geography to its strategic global investment plan.
“Our foray into Maldives will help drive self-sufficiency of cement in Maldives, which currently is predominantly an import market," said RCC group chief executive officer Joey Ghose. "Raysut is looking at adding local value in Maldives by installing production facilities to ensure there is at least 40% local content."
