UAE's Pioneer Cement to develop $200m Greenfield Cement Project in Georgia

UAE's Pioneer Cement to develop $200m Greenfield Cement Project in Georgia
Indian labourers carry bags of cement towards a waiting truck at a warehouse on the outskirts of Hyderabad on March 16 2010 Rising cement sales of some 1371 million tonnes in the month of February in India have raised the price to between 190 to 205 Indian Rupees USD 428 to 450 per bag as construction goes through an unprecedented boom in one of the worlds fastest rising economies AFP PHOTONoah SEELAM Photo credit should read NOAH SEELAMAFPGetty Images
Published: 18 October 2019 - 5 a.m.
The UAE based Pioneer Cement Industries, 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 $200m.

“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 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 $30m. 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 $40m cement grinding unit in Berbera, Somaliland as well as acquired Sohar Cement Factory LLC at a value of $60m.

Click here to add your comment

Please add your comment below
Your email address will not be published