Displaying items by tag: Raysut Cement

Oman: Raysut Cement has held a groundbreaking ceremony for a new 9MW waste heat recovery (WHR) unit at its Salalah cement plant. The Times of Oman newspaper has reported that China-based Sinoma Overseas Development will undertake the engineering, procurement and construction work on the project.

The producer said that the installation “Will contribute significantly to our ambitious targets such as reducing power consumption by 25 - 30%, reducing CO₂ emissions and above all reducing in water consumption by more than 50%.”

Oman: Raysut Cement’s revenue grew by 7% year-on-year to US$235m in 2020 from US$219m in 2019. Its profit after tax increased to US$36.5m from US$5.88m.

Oman: Raysut Cement subsidiary Duqm Cement Factory has signed a deal with Ahlibank for a US$21m loan for the construction of its Duqm grinding plant in Al Wusta Governotate. The grinding plant will produce ordinary Portland cement (OPC), Portland limestone cement (PLC) and ground granulated blast furnace slag (GGBFS), according to the Times of Oman newspaper. Construction of the plant started in November 2020.

Raysut Cement chief executive officer (CEO) Joey Ghose said, “We would like to extend our sincere gratitude and appreciation to Ahlibank for financing the Construction of Duqm Cement Factory’s new grinding plant in Duqm Industrial Estate. Through strategic partnerships with the public and private sectors, the bank has ensured the all-round development of Oman’s diverse sectors. The new cement plant will spur economic activities in around the Duqm Industrial Estate and thereby bring more and more businesses to the region.”

Oman: Raysut Cement received a total of seven awards at the Oman Best Employer Brand Awards 2020 and the Gulf Cooperation Council Best Employer Brand Awards 2020. Group chief executive officer (CEO) Joey Ghose won CEO of the Year at both the Oman and GCC awards. In the former, the company also won Best Use of Technology in the Workplace, Promoting Health in the Workplace and Training Provider of the Year. At the regional awards it won the Talent Management and Leaders of Tomorrow awards.

Acting deputy CEO Salim bin Ahmed bin Alawi Al Ibrahim said, “We operate beyond Oman - in the UAE through our subsidiary Pioneer Cement Company, in Yemen through associates and in East Africa through trading offices as well as new investments. We have also invested in Georgia and have recently acquired a terminal in the Maldives too. We will be expanding further and will be present in different parts of the world supporting infrastructure development in various geographies with Omani clinker and cement. Last year RCC acquired Sohar Cement Company and we believe that our success lies in our highly motivated, skilled and trained employees who deliver the best quality we are known for.”

Oman: Raysut Cement has inaugurated new leisure facilities at the Al Wafa Social Centre in Salalah. The company oversaw the establishment of a rehabilitation hall and hydrotherapy facility and reequipped the centre with new sports equipment.

Salalah cement plant general manager Mohammed Ahmed Aideed said, “The opening of this project comes within the company's strategy for social responsibility which covers the support for Al Wafa Social Centre in Salalah.” He added, “Today we inaugurate this project, which is one of the fruits of this strategy approved by Raysut Cement Company’s Board of Directors.”

Oman: Raysut Cement has held the groundbreaking ceremony for its new 1.0Mt/yr Duqm grinding plant. The project will cost US$30m. Chief executive officer (CEO) Joey Ghose said that, when operational, the plant will “contribute significantly to our ambitious capacity expansion targets of 10Mt/yr by 2022, which is expected to be further scaled up to 22Mt/yr in the near future. Secondly, it will help us generate more employment opportunities, aiding our efforts to enhance social and economic progress in Oman.”

The company acquired the lease to the site in the Port of Duqm in September 2019 as part of an on-going series of ‘calibrated’ investments in “locations where demand is high and locally available additives are at close proximity.” Ghose added, “Our aim is to develop Raysut Cement into a global leader in cement manufacturing, supply and exports, and the development of Duqm is an important element in this strategy. Our expansions are dovetailed to the opportunities that exist and are upcoming in the markets we focus on, for instance in East Africa - a booming market for the next 50 years.”

There’s no single theme this week, just a few news stories of note that may have wider significance.

Firstly comes the news that Semen Indonesia subsidiary Semen Padang has been exporting 25,000t of cement to Australia. This follows a consignment of 35,000t of clinker to Bangladesh. The company is hoping to hit a cement and clinker export target of 1.58Mt in 2020 in spite of the on-going coronavirus pandemic. It reached 1.09Mt (about 70%) of this by mid-September 2020 through exports to Bangladesh, Myanmar, Philippines, Australia, Sri Lanka and Maldives.

The wider picture here is that local sales in Indonesia fell by 7.7% year-on-year to 27.2Mt in the first half of 2020 from 29.4Mt in the same period in 2019, according to data from the Indonesian Cement Association (ASI). Cement and clinker exports are up by 32.8% to 3.7Mt from 2.8Mt. Semen Indonesia’s revenue is down but it has managed to hold its earnings up so far. During press rounds in late August 2020 its marketing and supply chain director, Adi Munandir, told local press that he expected domestic demand to fall by up to 15% in 2020 due to effects of coronavirus on private construction and government infrastructure plans. Analysts reckon that the worst of the demand slump hit in the second quarter of 2020 when government-related coronavirus restrictions were implemented, so Semen Indonesia’s third quarter results will closely scrutinised.

One of Semen Padang export targets is the Maldives. This chimes with another story this week because Oman-based Raysut Cement has just bought a majority stake in a cement terminal from Lafarge Maldives for US$8m. The 9000t capacity Thilafusi cement terminal is located on the island of Thilafusi, Kaafu and was expanded in 2015. Raysut Cement has tended to stick to markets in the southern Arabian Peninsula and the east coast of Africa, with projects planned in Madagascar and Somaliland. Yet expansion plans in places further away such as India and Georgia have also been mentioned publicly. A greater presence in the Maldives is a solid step towards Raysut heading eastwards. This would also mirror the plans of the country’s gypsum sector to dominate African and Asian markets and a general longer term shift in global markets from west to east.

One place west that has been doing well in cement though is Brazil. National Cement Industry Union (SNIC) data for September 2020 show a 21% year-on-year boom in cement sales to 5.8Mt and a 9.4% year-on-year increase to 44.6Mt for the first nine months of 2020. Earlier in the year the country’s limited coronavirus suppression methods were attributed for letting the recovering cement sector grow. Now, SNIC has directly thanked government support for civil construction. However, Paulo Camillo Penna, the president of SNIC said. “The results are surprising so far, but that doesn't give us security in the long run,” due to a bubble of real estate and commercial activity that already appears to be declining. Given the slump in cement demand from 2015 to 2018 it’s understandable that SNIC is taking the recovery cautiously.

And to finish we have two connected stories about Cemex. Following the release of its resilience strategy in September 2020, the company has now declared that its integrated Rüdersdorf cement plant in Germany will be the centrepiece of its CO2 reduction plans as part of ‘Vision Rüdersdorf.’ Details are light at present but we expect some kind of carbon capture and storage or usage project. An addendum to this – or perhaps it’s the other way round (!) – is that Cemex has also just announced further credit amendments but with sustainability-linked metrics. Cemex’s chief financial officer (CFO) Maher Al-Haffar said, “We are especially proud that this transaction represents one of the largest sustainability-linked loans in the world.” The teeth of this arrangement remain to be seen but the integration of finance and sustainability has serious implications generally.

Watch out for a research and development themed interview with Cemex and Synhelion in the December 2020 issue of Global Cement Magazine

Maldives: Lafarge Maldives has rebranded to Raysut Maldives Cement following its 75% acquisition by Oman-based Raysut Cement. State Trading Organization retains its 25% stake in the joint venture, which operates the 75,000t/yr-capacity Thilafushi Island cement terminal. The company says that it plans to expand the terminal’s capacity by 167% to 0.2Mt/yr by 2022.

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

Maldives: Oman-based Raysut Cement has announced its acquisition of a 75% stake in Lafarge Maldives for US$8m. The subsidiary of LafargeHolcim operates the 9000t-capacity Thilafusi cement terminal on the island of Thilafusi, Kaafu Atoll, which it opened in June 2015.

Oman: Raysut Cement has appointed Salim Ahmed Alawi Al-Ibrahim as Acting Deputy Group chief executive officer (CEO). He will support Raysut’s Group CEO Joey Ghose in the role. Salim has been with Raysut Group since 2014 and has been described as ‘contributing significantly’ to the company in the sales department.

Mohammed Ahmed Aideed has also been promoted as the Acting General Manager of Raysut Cement. Mohammed holds over a decade of experience in sales and marketing and has been working with Raysut Cement since 2009. He started his career as a sales representative and subsequently moved up to managerial positions. He has also held senior positions such as Head of Marketing and Business Intelligence, Acting CEO and Head of Business Support.