Raysut plans to buy Star Cement
Published: 24/02/2010 6:37 am
Oman’s largest cement producer, Raysut Cement Company, is planning to acquire Star Cement group
Oman's largest cement producer, Raysut Cement Company, is planning to acquire Star Cement group, in an apparent bid to achieve an exponential growth in capacity, a company official said.
Star Cement has several cement and clinker manufacturing plants, as well as terminal facilities in several parts of the region, including Ras al Khaimah, Abu Dhabi, Ajman, Bahrain and Yemen.
We are in the process of bidding for the company. There are other bidders as well. The group has cement and clinker plants in several locations," said Samidh Mukhopadhyay, chief financial officer of Raysut Cement.
Mukhopadhyay said that the acquisition could involve either some plants or the whole group as a single entity. Considered one of the leading players in the region, Star Cement produces various grades of cement such as ordinary portland cement, sulphate resistant cement, moderate sulphate resistant portland cement and white cement.
"Star Cement's market include the UAE, Bangladesh, Sudan and Yemen." On the cost of acquisition, he said, "We are not going to comment on it at this moment since it is in the bidding process."
Star Cement group has a clinker plant in Ras al Khaimah, one cement grinding plant each in Abu Dhabi, Ajman, Bahrain, Yemen, Bangladesh, a terminal forcement storage and packaging in Sudan and a precast factory in Abu Dhabi.
"Now a new opportunity has emerged and we are working in that direction," he added, referring to the company's plans to acquire Star Cement. "More clarity [on the proposed acquisition]will emerge by March."
Regarding enhancing capacity Mukhopadhyay said that there are two options before the cement company: Install newcapacity in its plants or acquire new companies."