Raysut’s subsidiary Pioneer Cement to build $200m cement plant in Georgia
Raysut Cement, an Omani cement manufacturer, said that is UAE-based subsidiary Pioneer Cement will build a $200 million worth integrated cement plant in Georgia, Eastern Europe, which will have a capacity of 1.2 million tonnes per annum capacity.
The cement factory in Georgia will be located near Tbilisi, adjacent to limestone mines. Pioneer Cement owns the concession to limestone mines that will supply the key raw materials to the cement plant.
Raysut Cement said that the debt and equity arrangements for the cement project are being finalized. Construction on the project is slated to begin in the fourth quarter of this year.
B.S. Rajan – General Manager of Pioneer Cement said: “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.”
Raysut Cement had previously announced a decision to invest $700 million in India by 2022. The Omani cement manufacturer will pursue its growth in India by acquiring majority stakes in a couple of Indian cement producers for $200 million.
According to Raysut Cement, the Georgia expansion of Pioneer Cement will also support the group’s objective to diversify from the Middle East into markets having large infrastructure growth and inadequate amounts of clinker and high-quality cement.
Joey Ghose – CEO of Raysut Cement said: “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.”
The company’s expansion in Georgia follows the signing of a land lease agreement and Port of Terminal services agreement with Port of Duqm Company SAOC for constructing a $30 million new grinding unit in Oman. The Duqm plant is being established as part of the company’s expansion strategy in the local and regional markets.
In 2019, Raysut partnered with MSG Group in East Africa to establish a $40 million cement grinding unit in Berbera, Somaliland apart from acquiring Sohar Cement Factory for $60 million.