Raysut Cement Company has commissioned a new cement grinding unit boosting the plant's capacity by an addition 750,000 tonnes per annum.
Mr Mohammed bin Alawi bin Ali Muqaibal chairman of the Board of Directors said in the Director's Report of the company's performance in 2010 that the new capacity would help the company meet the burgeoning domestic demand for cement. The rapid growth of the construction and infrastructure sectors among other factors is expected to boost cement demand by 1.5 million tonnes during 2011.
Mr Ali Muqaibal said that the rapid recovery of the construction sector in Oman is expected to continue on the back of the improving economic environment, thanks to sound fiscal accounts, sound monetary policy, low inflation, reduced systemic risk in the financial system and the OMR 6 billion investment in infrastructure projects for 2011 just announced by the government. This will result in an additional increase in cement demand of 1.5 million tonnes for the year. However, taking into account the still slow recovery in the UAE sector, the price realisations are expected to improve only slightly from their current level.
He said that to help support its overseas distribution activities, Raysut Cement has also set up 100% subsidiary under the name Raybulk Navigation Inc. A vessel acquired by the company will enter service sometime this year. Further, in line with its long term strategy to expand and become a regional player the company has invested in Pioneer Cement Industries LLC located at Ras al Khaimah by acquiring 100% with the exception of one share of the latter's 55,000 shares.
He added that this would enable the company to have a foothold in the UAE with additional capacity of 1.7 million tonnes of cement catering to the needs of export markets and local markets. This would also be an enabler for releasing larger volume of cement from the company's plant in Salalah to markets in the south and the central part of Oman as well as to various export markets.
(Sourced from Oman Daily Observer)
