Union Cement Company purchase marks Shree Cement's first foray into overseas markets
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.