Raysut Cement Company (RCC), Oman's biggest cement producer, on Sunday said it is building a distribution terminal in Duqm and additional silo capacity in the Salalah plant.
The company is also building an offshore un-loader and blow pump system in the north to facilitate bulk cement handling. "The work is in progressive stage for some of these projects and the company would reap benefits from these starting from the early part of next year," stated Ahmed bin Alawi bin Abdulla Al Ibrahim, chairman of the company, while announcing the company's third quarter results.
The company also is exploring avenues of spreading its marketing potentials beyond Oman market.
Raysut Cement Company also said its profit for the first nine months of 2014 rose by eight per cent to OMR23.26 million from OMR21.52 million for the same period last year.
Profit before tax earned by the parent Company in Oman stood at OMR20.25 million, while profit earned by subsidiaries like Pioneer stood at OMRO 3.42 million, Raybulk at OMR0.67 million and Raysea Navigation at OMR0.03 million.
The Raysut Cement group has earned revenue of OMR70.76 million for the period, against OMR70.19 million for the same period last year.
"While there are positive signs of growth in Oman market, the same is not being translated into cement demand due to sever competitions from the UAE suppliers. The competitions are also experienced in the Yemen and east African markets.
Pressure on volume
UAE is still to engineer significant growth so that the local supplies can be absorbed instead of being offloaded to Oman. So this has caused a considerable pressure on volume and price in the north market for RCC plant," added the chairman.
The parent company has achieved sales revenue of OMR50.43 million during the period ended September, 2014. "In spite of competitions in the northern markets and volatility in the export markets, the parent company could largely cover the revenue of previous period with a smaller decline of one per cent."
The group as a whole has sold 2,830,158 tonnes of cement during the period ended on September 30, 2014 against 2,792,256 tonnes of cement sold during the corresponding period of previous year.
The group as a whole has produced 2,461,305 tonnes of clinker and 2813005 tonnes of cement for the first nine months of 2014, against 2,473,426 tonnes of clinker and 2,786,836 tonnes of cement produced during the same period last year.
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