The FINANCIAL (Press-Release) -- The UAE based Pioneer Cement Industries (“Pioneer Cement”), part of Oman based Raysut Cement Company SAOG (RCC) is in the process of setting up a 1.2 m tonnes per annum capacity integrated cement plant in Georgia, Eastern Europe.
Pioneer Cement owns concession to limestone mines in Georgia that will provide the key raw materials to this project. Georgia provides Pioneer Cement an opportunity to diversify from the Middle East into a market with large infrastructure growth and shortage of clinker and high-quality cement, the company said in a statement.
The plant will be located near Tbilisi, adjacent to the limestone mines. The debt and equity arrangements for the project are currently being finalized and the construction work in the project is slated to commence from Q4 2019.
The value of the project is estimated at $200 million.
“We have embarked on an aggressive and ambitious expansion strategy in the region with specific focus on Africa and neighboring regional countries, and in this context setting up Pioneer Cement Georgia is a significant geographical diversification,” said RCC Group CEO Mr. Joey Ghose.
Speaking about the project, B.S. Rajan General Manager 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."
The Georgia expansion of Raysut comes close on the heels of the company’s announcement of signing a land lease agreement and Port of Terminal services agreement with Port of Duqm Company SAOC for building a new grinding unit in Oman at an investment of US$30 million. The Duqm plant is being set up as part of the company’s aggressive expansion strategy in the local and regional markets.
This year Raysut also joined hands with MSG Group in East Africa to set up a US$40 million cement grinding unit in Berbera, Somaliland as well as acquired Sohar Cement Factory LLC at a value of US$60 million.
Notes to editors:
About Pioneer Cement Industries:
Pioneer Cement Industries was incorporated in 2004 and is part of Oman based Raysut Cement Company SAOG. Pioneer operates a state-of-the-art integrated cement plant with a capacity of 1.5 million tonnes of cement. The plant is located 45km north of Ras al Khaimah and about 1 hour from Dubai, UAE. The company is one of the market leaders in the UAE and also exports its product to regional markets. The plant produces high quality cement which meets British, European and American standards.
About Raysut Cement Company S.A.O.G:
Raysut, headquartered in Salalah, Oman, is a leading cement company in the Middle East, with clinker and cement manufacturing assets in Oman, Yemen and the UAE. Raysut has 3.6 million tons of integrated cement manufacturing capacity in Salalah. The current capacity of Raysut Cement stands at 6.4 million tonnes per annum.