The Government of Ras Al Khaimah has completed a foreign direct investment (FDI) deal with India’s Shree Cement for the acquisition of the emirate’s Union Cement Company (UCC).
Prior to acquisition by Shree Cement, UCC was a listed company on the Abu Dhabi Securities Exchange. It has now been de-listed from ADX and converted into a private joint stock company.
The UCC purchase marks Shree Cement’s first foray into overseas markets, with the emirate providing a strategic location from which to grow business across export markets in the Arabian Gulf, Middle East and East Africa, a statement said.
Sheikh Khalid bin Saud Al Qasimi, vice chairman of the Investment and Development Office, said: “We are pleased that Shree Cement chose Ras Al Khaimah as its first international base in a deal that will see one of the biggest players in the cement industry operate outside of its domestic market for the first time.”
B G Bangur, newly appointed vice chairman Union Cement Company and chairman, Shree Cement said: “It is a historic moment for us as this is our first acquisition outside India. We are happy to be here.”
UCC operations have a clinker capacity of 3.30 metric tonnes per annum (MTPA) and cement capacity of 4 MTPA.
With this acquisition, the aggregate cement capacity of Shree Cement has increased from the present 37.9 MTPA to 41.9 MTPA.
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.