Raysut Cement Company (RCC) on Tuesday announced that it has acquired a 75 per cent stake in LafargeHolcim’s cement terminal at Thilafushi Island in the Maldives, and a new joint venture – Raysut Maldives Cement Pvt Ltd – has been formed.

The new entity with State Trading Organization (STO) of Maldives owning 25 per cent has plans to expand the terminal’s capacity from current 75,000 tonnes per annum to over 200,000 tonnes per annum. The terminal will be owned and operated by the RCC-STO joint venture entity, Raysut Cement said in a press statement.

The takeover of the terminal in the Indian Ocean country marks a new phase for the Muscat Securities Market-listed Raysut Cement since it will be adding a new geography to its strategic global investment plan.

“The Maldives acquisition will boost Raysut Cement’s profitability and production to full capacity, particularly of its plant in Salalah,” said Sheikh Ahmed YousefAlawi al Ibrahim, chairman of Raysut Cement Group.

This acquisition opens a corridor of trade between Oman and Maldives not only in the cement industry but also in other areas, the company said.

“Our foray into the Maldives will help drive self-sufficiency of cement in the Maldives, which currently is predominantly an import market. Raysut Cement is looking at adding local value in the Maldives by installing production facilities to ensure there is at least 40 per cent local content. This will also make the market more competitive from a price point which will have its positive impact on infrastructure development in the island nation,” said RCC’s group CEO Joey Ghose.

“The acquisition followed by the formation of the new joint venture will cement Raysut Cement’s position further as an emerging global cement player with significant overseas presence in markets of the Middle East and East Africa,” he said. 

Ghose added that the move to invest in the Maldives is in line with their corporate strategy to expand its footprint into global markets and be a partner in developing countries where it will invest with established local partners.