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EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

Raysut Cement affirms intent to acquire 100 per cent stake in Suhar plant

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Muscat, MAY 4 - Raysut Cement Company, the Sultanate’s largest cement manufacturer, says it plans to fully acquire Sohar Cement Company located in Suhar Industrial Estate — a move that will effectively elevate the former into the ranks of the largest cement producers in the Middle East. Salalah-based Raysut Cement announced in the company’s financial report for the first quarter of 2019 that the proposed acquisition, first revealed via a filing to the Capital Market Authority in February, is currently in progress.


“The parent company is in the process of acquiring a 100 per cent stake in Sohar Cement Factory LLC (a cement grinding unit with distribution network), and signed a Letter of Intent. The Sohar Cement Factory is located in Suhar and has a capacity of 1.7 million tonnes of cement production,” said Ahmed bin Yousuf bin Alawi al Ibrahim, Chairman of the Board of Directors — Raysut Cement, in the Directors’ Report. Sohar Cement — the Sultanate’s third cement mill after Oman Cement and Raysut Cement — came into operation this year, helping add to domestic production capacity and reduce the nation’s dependence on imports for this strategically important commodity.


The new facility, featuring a cement-grinding unit with a capacity of around 240 tonnes per hour, has been developed by a partnership of Sohar Cement (holding 70 per cent of the equity) and UAE-based Fujairah Cement Co (owning the balance 30 per cent of the equity). Underscoring its appetite for strong growth, Raysut Cement revealed last December that it was exploring the potential acquisition of ARM Cement of Kenya as part of the company’s aggressive strategy to expand in East and Central Africa. Furthermore, the Raysut Cement is exploring opportunities in the Horn of Africa, Uganda and Georgia as well.


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