Raysut Cement Subsidiary, Pioneer Cement, to develop USD200 million Georgia Cement Project
Mumbai (Maharashtra) [India] Oct 21 (ANI/BusinessWire India): Oman's largest cement manufacturer, Raysut Cement Company (RCC), which announced that it is looking at $700 million investment in India by 2022 today said its subsidiary, Pioneer Cement of UAE is in the process of setting up a 1.2mn tonnes per annum capacity integrated cement plant in Georgia, Eastern Europe.
ANI
Oct 21, 2019 15:20 IST
Mumbai (Maharashtra) [India] Oct 21 (ANI/BusinessWire India): Oman's largest cement manufacturer, Raysut Cement Company (RCC), which announced that it is looking at $700 million investment in India by 2022 today said its subsidiary, Pioneer Cement of UAE is in the process of setting up a 1.2mn tonnes per annum capacity integrated cement plant in Georgia, Eastern Europe.
The plant will be located near Tbilisi, adjacent to the limestone mines. The debt and equity arrangements for the project are currently being finalized and the construction work in the project is slated to commence from Q4 2019, the company said in a statement. The value of the project is estimated at $200 million.
While Raysut will pursue its India growth through acquisition of majority stakes in two Indian cement producers at $200 million, the Georgia expansion of its subsidiary will also support the group's endeavour to diversify from the Middle East into markets with large infrastructure growth and shortage of clinker and high-quality cement.
Pioneer Cement owns concession to limestone mines in Georgia that will provide the key raw materials to this project.
"We have embarked on an aggressive and ambitious expansion strategy in the region and our expansion into Georgia, Africa and India will help us be close to growth markets," said Joey Ghose, CEO, RCC.
"The Georgia expansion is a major milestone for Pioneer and its parent company Raysut, as it opens up a diverse market for us in terms of growth potential as well as new challenges. We are confident that this move will further strengthen and complement our aggressive expansion strategy in regional and global markets and grow into a development partner in economies across a wide geographical footprint," said B S Rajan, General Manager, Pioneer Cement.
The Georgia expansion of Raysut comes close on the heels of the company's announcement of signing a land lease agreement and Port of Terminal services agreement with Port of Duqm Company SAOC for building a new grinding unit in Oman at an investment of US$30 million. The Duqm plant is being set up as part of the company's aggressive expansion strategy in the local and regional markets.
This year Raysut also joined hands with MSG Group in East Africa to set up a US$40 million cement grinding unit in Berbera, Somaliland as well as acquired Sohar Cement Factory LLC at a value of US$60 million.
This story is provided by BusinessWire India. ANI will not be responsible in any way for the content of this article. (ANI/BusinessWire India)
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