Raysut board clears terminal, grinding expansion projects

The estimated cost to be contributed by Raysut Cement for these projects is $24 million. This development and expansion will have positive impact on the performance results and profitability of the company in the future. Picture is used only for illustrative purpose. Photo – Times file photo

by Times News Service

Muscat: The board of directors of Raysut Cement Company, the Sultanate's largest cement producer, has approved four expansion projects at an estimated cost of $24 million, which will be funded by the company.

These projects are one each modern cement terminal at Duqm port and Somaliland's Berbera port, a grinding plant in Mukulla (Yemen) and enhancing production capacity of its sister firm Pioneer Cement Industries based in Ras Al Khaimah.

The Duqm terminal, which will have two silos with a capacity of 4,000 tonnes each, is for storing, packing and distributing cement. The terminal is coming up at the world class Duqm port, which is 2.25km long.

"The Duqm terminal expected to commence operation in the second half of 2014," said Mohamed Ahmed Al Dheeb, group chief executive of Raysut Cement, in a statement. 

The cement terminal in Berbera Port will be in joint venture with one of the local partners. This terminal is also for storing, packing and distributing cement, with all the facilities and equipment, including three silos in the capacity of 4000 tonnes each.

Financial support
 
The board of directors also approved a proposal to establish grinding plant in Mukulla, Yemen, through Mukalla Raysut Company (which is a sister concern) as a joint venture with a local partner with the capacity of 0.5 million tonnes per annum. This grinding plant will carry out grinding and packing of cement in Yemen.

Another proposal to expand the production capacity and production processes of Pioneer Cement Industries in Ras Al Khaimah, a subsidiary firm, was also approved. The projects include additional cement silo, upgrading of cooling system and environment management systems.

The estimated cost to be contributed by Raysut Cement in these projects is $24 million. This development and expansion will have positive impact on the performance results and profitability of the company in the future. 

The company's board also approved a proposal to provide financial support to Al Wafa'a Centre for Handicapped Children Education — Salalah to the tune of OMR100,000.

This represents part of the total amount previously approved by the annual general meeting regarding the social responsibility of the company.

Raysut Cement Company's consolidated profit before tax soared  33 per cent to OMR9.13 million for the first quarter of 2013, from OMR6.84 million for the same period last year. The group's revenue also edged up by 2 per cent to OMR25.22 million from OMR24.64 million during the period.