The UAE-based Pioneer Cement Industries, part of Oman-based Raysut Cement Company (RCC), is in the process of setting up a 1.2 million tonnes per annum capacity integrated cement plant in Georgia.
The value of the project is estimated at $200 million.
Pioneer Cement owns concession to limestone mines in Georgia that will provide the key raw materials to this project, said a statement.
“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.
The plant will be located near Tbilisi, adjacent to the limestone mines. The debt and equity arrangements for the project are currently being finalised and the construction work on the project is slated to commence from Q4 2019.
“We have embarked on an aggressive and ambitious expansion strategy in the region with specific focus on Africa and neighbouring regional countries, and in this context setting up Pioneer Cement Georgia is a significant geographical diversification,” said RCC Group CEO 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 for building a new grinding unit in Oman at an investment of $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 $40 million cement grinding unit in Berbera, Somaliland as well as acquired Sohar Cement Factory at a value of $60 million. – TradeArabia News Service