Displaying items by tag: Oman

UAE: Cement producers in United Arab Emirates (UAE) have defended their right to export to Oman amidst calls for curbs on imports. Raysut Cement, Oman's largest cement producer, has asked the Government of Oman to implement a ceiling on UAE imports, according to local media. However, UAE producers deny that they are flooding the Oman market.

"There's a shortage and we are covering that shortage," said Suliman Ali Abdullah Al Shehi, a sales manager at Gulf Cement. Raysut Cement has said that the market only needs 1Mt/yr of cement but that UAE producers are exporting 2.5Mt/yr. However UAE producer Fujairah Cement has estimated demand at nearly 3Mt/yr.

Raysut Cement has requested the government in Oman to cap UAE cement imports and to limit the load on each lorry crossing the border from the UAE. The UAE produces over 24Mt/yr according to the Ministry of Economy. Nearly 60% of the total cement production is exported to neighbouring countries in the region.

Oman: Oman Cement has disclosed that it intends to award the contract for supply and installation of a new 150t/hr cement mill to FLSmidth. FLSmidth separately confirmed that a letter of intent had been signed by Oman Cement, although final negotiations remain to be completed. No price for the contract has been released.

Other announcements from the Oman-based cement producer include an upgrade of kiln 1 to increase production and improve pollution control. Oman cement also plans similar pollution control improvements to kiln 2 with the aid of a consultant.

Oman: The board of directors at Oman's Raysut Cement has announced that it will give the green light to the firm's plans for a series of expansion moves, both at home and abroad. As part of the plan, the country's largest cement manufacturer will establish modern state‐of‐the‐art Cement Terminal inside Oman's Duqm Port for storing, packing and distribution of cement. The facilities will include two silos, each with a capacity of 4000t. The port plan is expected to commence operation in the second half of 2014.

The Raysut board has also given approval for the establishment of a modern state‐of‐the‐art cement terminal at Berbera Port in Somalia. The construction, to be undertaken as a joint venture with local partners, will see storage, packing and distribution of cement from three 4000t silos.

Additionally, the board approved the establishment of a grinding plant in Mukulla, Yemen through its sister company Mukulla Raysut. Another joint venture with a local partner, the Yemen grinding plant will have a capacity of 0.5Mt/yr and will pack cement for the Yemeni market.

Finally, Raysut is planning to improve its Pioneer Cement Industries plant in the United Arab Emirates. The expansion will see the installation of an additional cement silo, a cooling system upgrade and the installation of environmental abatement systems.

"This development and expansion will have positive impact on the performance results and profitability of the company in the future," said Raysut in a statement.

Oman: One of the cement grinding mills at Oman Cement Company (OCC), which has a production capacity of 150t/hr, has developed a major technical problem and has been shut down for repairs. An inspection by the technical expert from the manufacturer has indicated that the spare parts required to carry out the repairs will be available in about 14 weeks' time. The company also highlighted that it was investigating alternative ways to repair the mill locally.

The effect of the failure is that 0.36Mt less cement will be produced between June 2013 and September 2013, if the manufacturer's repair time estimate holds.

Oman: On 23 May 2012 Oman Cement Company (OCC) said that the Public Authority for Consumer Protection (PACP) has initiated an investigation on the quality of cement imported by the company. A team from PACP visited the company to inspect the cement imported and locally purchased for blending with its own cement, which the team considered to be a violation.

However, the company assured the team that the cement purchased after tender process is manufactured by reputable local and foreign cement companies according to the specifications better than the British-European and Omani standards and conform to high quality standard followed by OCC.

The clarification was in response to a newspaper report on deceptive commercial practices carried out by a company in importing 30,000t of 'inferior' quality cement, which was allegedly re-packed and sold as high quality product at a high price.

OCC also assured the authority that the cement purchased has been subjected to laboratory test and harmonising it with OCC-manufactured cement is undertaken with adherence to high quality standards.

"The purchase of cement, which amounts to about 30,000t and is hardly 1% of the annual capacity of the firm, had been necessitated due to breakdown of one of the cement mills of the company in April 2013," added OCC in a statement.

In a separate statement Raysut Cement sought to distance itself from the communication between OCC and the PACP.

Oman: Oman Cement Co has reported a 35% rise in its net profit for the first quarter of 2013 on the back of improved sales volumes. Its net profit rose to US$17.9m from US$13.3m in the same period of 2012.

The company reported sales of 628,553t of cement during the first quarter of 2013, 12.5% higher compared to the 558,495t sold in the same period of 2012. In value terms, sales for the three-month period rose by 12% to US$40.7m from US$35.6m in the same period of 2012.

Company chairman Dr Abdullah Abbas Ahmed said, "We have continued to successfully improve our sales and profit with a balanced approach of marketing efforts, a competitive price structure and discount scheme backed by the quality of our products and adopting effective expenditure control measures."

"As demonstrated by increased sales volume during the first quarter, the company is confident of the demand for cement in the country. With the company's well-structured pricing policy, we hope that in spite of stiff competition with other cement manufacturers, particularly from neighbouring countries, the company will continue to do well in retaining its market share," added Ahmed.

Oman Cement Co is in the process of increasing its cement-grinding capacity by installing a new 150t/hr cement mill. The company is also planning to improve its pollution control equipment on one of its kilns to decrease dust-emission levels. The process of identifying a suitable consultant for this task is in progress.

Oman: Raysut Cement Company is planning to build a cement-handling terminal at Duqm port with other investors. At an industry seminar reported upon by the Times of Oman, Mohammed Ahmed Al Dheeb, group chief executive officer of Raysut Cement, said the cement handling terminal will be completed within ten months of signing a lease agreement with the Special Economic Zone Authority at Duqm. Al Dheeb added that Raysut is also planning to develop mines in Duqm for limestone.

Raysut Cement has four cement handling terminals: in Muscat, Sohar, Mukalla, and Aden. It has four production lines in Salalah with a total cement production capacity of 3Mt/yr and a fully integrated production facility in Ras Al Khaima with a capacity of 1.5Mt/yr. Raysut also owns two ships for transporting cement to different parts of Oman and other countries.

Oman: The Oman Cement Company has reported that a dispute with a contractor has been settled. The company has received a settlement of US$7.81m from an unnamed contractor who was implementing a new clinker production line.

The compensation included US$110,000 towards another contract for an alternate belt conveyor. The clinker plant has been commissioned and commenced commercial production in 2011. The company had raised a compensation claim on the contractor for certain project-related issues. Similarly, the contractor had also raised claim for additional payment for some of the project activities. Oman Cement stated that further details will be disclosed in its next financial statement.

Oman: Raysut Cement Company, the Sultanate's biggest cement producer, has announced a 64.1% growth in net profit to US$63.7m for 2012, compared to US$38.8m for 2011. The company said its revenue also moved up to US$241m from US$216m, while cost of sales was edged up to US$163m from US$161m.

"A net profit of US$20m for the fourth quarter was higher than our estimate of US$15.3m, as Raysut booked an investment gain of US$3.53m. Excluding this investment gain, the recurring net profit was only 8% above our estimate," said EFG Hermes in a research note. The note added that Raysut expects stable to moderate increases in cement prices and solid year-on-year volume growth to be sustained, backed by infrastructure developments in Oman.

Oman: Oman Cement Co has recorded a 36.7% rise in its net profit from US$33.2m in 2011 to US$45.5m in 2012. It reported that its total revenue rose by 17% to US$154m in 2012 from US$131.7m in 2011. However, total expenditure also rose in 2012 by 9.4% to US$102.8m from US$94m in 2011.

It is expected that Oman will see good demand for cement in 2013 due to government spending on infrastructure projects and increased construction activity. Analysts expect no increase in imports. Cement producers in the sultanate have faced tough competition over the last few years from UAE suppliers who sell cement in large quantities at lower prices in Oman.

Sameer Kattiparambil of EFG-Hermes, said, "The growth in net profit is mostly volume driven with some recovery in local cement prices. Owing to the fact that no major extra cement is being imported, prices have stabilised in the market over the last quarters."

"Since export prices have gone up, there has not been much addition to the profits of UAE exporters. Imports will continue to a limited extent but there will be no major increase. Oman Cement is working up to 96% of its capacity, so in the future, there is not much room for volume-driven growth," Kattiparambil added.