Raysut Cement Company (RCC), Oman's largest cement manufacturer, announced on Tuesday the groundbreaking for the construction of its new $30 million grinding unit in Duqm in Oman.

The development of the Duqm plant would add another one million tonnes to the group output, taking its total capacity to 7.4 million tonnes per annum, the Muscat Stock Market (MSM)-listed company said in a press statement.

Group CEO Joey Ghose said the groundbreaking would contribute significantly to RCC's ambitious capacity expansion target of 10 million tonnes by 2022 and to 22 million tonnes in the near future while generating local employment opportunities.

"Our aim is to develop RCC into a global leader in cement manufacturing, supply and exports and the development of Duqm is an important element in this strategy," said Ghose.

In September 2019, RCC had signed a land lease and Port of Terminal services agreement with Port of Duqm for the project.

"The new grinding unit will add more muscle to our capability to cater to the regional and global markets of RCC which continues to expand with new investments and acquisitions in Oman, Asia and East Africa," said Salim bin Ahmed bin Alawi Al Ibrahim, Acting Deputy Group CEO.

He added that the Duqm grinding unit would help the company consolidate and strengthen its presence in Oman and the neighboring Gulf markets.

Ambitious expansion

RCC has been expansion spree through M&As and new investments in Oman as well as overseas in the past one year.

According to the statement, in May 2019, it acquired Sohar Cement Company in Oman for $60 million. As part of its global expansion plans, the company had announced in October 2019 that it would develop a green field 1.2 million tonnes per annum cement plant near Tbilisi, Georgia at an investment outlay of $200 million.

The plant, the statement said, would be developed by RCC's wholly-owned UAE subsidiary, Pioneer Cement Industries, which owns a concession for limestone mines in the Eurasian country. RCC had also announced last year plans to invest $40 million in a new grinding unit in Berbera, Somaliland.

Last month, RCC announced the takeover of LafargeHolcim's cement terminal at Thilafushi Islands in Maldives.

(Writing by Syed Ameen Kader; Editing by Anoop Menon)

(anoop.menon@refinitiv.com)

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