Raysut Cement eyes ambitious expansion

The Sultanate’s largest cement manufacturer, Raysut Cement Company, is reported to be eyeing the acquisition of ARM Cement of Kenya as part of the company’s aggressive strategy to expand in East and Central Africa.
ARM Cement, which is a producer and major supplier of cement in Kenya and Africa in general recently went into administration with a debt of over $140 million and Raysut has expressed its interest to the administrators to acquire the company, a statement released today said.
The acquisition is estimated to be valued at over $100 million. The acquisition will complement Raysut’s revised strategy to manufacture clinker in proximity to the markets it supplies to in East Africa.
However, in a filing to the Capital Market Authority (CMA), Raysut Cement CEO Joey Ghose termed news reports about the company’s expansion plans as “premature” and still the subject of discussions by the Group. Board approval is also awaited, he stated.
According to media reports, Raysut Cement is already in the process of setting up a grinding unit in Somaliland and Mogadishu, Somalia with a Dubai-based partner. The company is also in advanced discussions to acquire various cement producers in Uganda and Djibouti.
Plans are also afoot to build a one million tonne per annum cement plant in Berbera, Somalia and the construction work could start as early as January 2019. Raysut Cement is also in advanced negotiations with Kampala Cement.
Raysut Cement is one of the major clinker suppliers to the East African region and the ARM assets will fit very well with its plans for East Africa where in the last quarter alone it supplied over 300,000 tonnes of clinker from its home plant at Salalah, Oman to Kenya and Tanzania.