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Sat 26 Oct 2019 12:38 AM

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UAE firm plans $200m cement plant in Georgia

Pioneer Cement Industries says construction of cement plant is slated to start by the end of this year

UAE firm plans $200m cement plant in Georgia
(Photo for illustrative purposes only)

UAE-based Pioneer Cement Industries, part of Oman's Raysut Cement Company (RCC), is in the process of setting up an integrated $200 million cement plant in Georgia, Eastern Europe. 

Pioneer Cement owns concession to limestone mines in Georgia that will provide the key raw materials to the project which will have a 1.2 million tonnes per annum capacity. 

Pioneer said in a statement that Georgia provides it with an opportunity to diversify from the Middle East into a market with large infrastructure growth and shortage of clinker and high-quality cement.

The plant will be located near Tbilisi, adjacent to limestone mines, the company said, adding that debt and equity arrangements for the project are currently being finalised.

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Construction work is slated to start before the end of 2019.

“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.

BS Rajan, general manager, Pioneer Cement said: "The Georgia expansion is a major milestone... 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 for a new grinding unit in Oman with an investment of $30 million.

Raysut also joined hands with MSG Group in East Africa to set up a $40 million cement grinding unit in Berbera, Somaliland this year.

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