In a filing to the Muscat Securities Market, Raysut Cement said that its board of directors on Tuesday approved the proposal to establish a cement grinding unit in Duqm with a production capacity of 1mn tonnes of cement per annum.
‘The estimated project cost is about US$30mn, and the project work is expected to start on September 19,’ the filing said.
Last month, Raysut Cement signed an agreement with Bank Nizwa for a RO19.5mn loan facility. The loan facility consists of long-term financing of RO12mn, working capital of RO3mn to Raysut Cement in Salalah and RO4.5mn for construction and expansion of Sohar Cement Factory LLC in Sohar, according to a press statement issued by Bank Nizwa.
The ongoing economic development near the Duqm port and its surrounding area is likely to boost demand for cement in the locality. Cement makers have being planning to set up a unit in Duqm to meet the growing demand for cement.
Earlier in December last year, Oman Cement Company had also announced its intention to set up a cement manufacturing plant in Duqm with an investment of around US$212mn.