Sheikh Saud inaugurates AED 400 m Pioneer Cement Industries plant in RAK

The Pioneer Cement Industries plant with a one million ton per annum capacity has been set up as a joint venture between RAK Investment Authority (RAKIA) and the Indian company Penna Cement Industries Limited.

Speaking on the occasion, Sheikh Saud said that inauguration of the new cement plant marked yet another milestone in the rapidly growing industrial sector of Ras Al Khaimah.

Sheikh Saud noted that the joint venture manufacturing facility was also a testimony to the long standing cordial relationship that has flourished between India and UAE over the centuries.

Dr. Khater Massaad, Advisor to the RAK Crown Prince and CEO of RAKIA is the Chairman of the new company and P Prathap Reddy, the CMD of
Hyderabad- based Penna Group of Industries is the Managing Director.

Dr. Khater Massaad said that the one million ton cement plant would further enhance the proven cement production capabilities of Ras Al Khaimah. He said that the state-of-the art cement plant has been set up in a record time of 16 months.

"The timing of the project is perfect with the increasing demand for cement globally and in view of the booming construction and real estate development activities happening in the Gulf region. The demand for cement is expected to increase by 10-15 percent per year in UAE to reach 25 million tons in the next five years",

he said.

RAKIA has a 51 percent stake in Pioneer Cement Industries with Penna Cement Industries holding the remaining 49 percent. The project was financed by Arab Bank Plc, HSBC Bank Middle East Ltd, United Arab Bank and State Bank of India, Bahrain.

Dr. Massaad said that the plant has already achieved 100 percent production and would be targeting the local market and the export markets as well.

"We have installed the latest technology and machinery to maintain high operational safety levels and high product quality with low energy consumption levels", Dr. Massaad added.

He said that the company is also exploring avenues to expand and set up facilities in various Arab countries and in Sudan. Dr. Massaad said that RAKIA has been able to attract more than AED 3 billion in industrial investments to Ras Al Khaimah in the last one year.

Speaking at the function, Indian Ambassador to the UAE, C M Bhandari hailed the growing business ties between UAE and India and said that UAE is setting new standards for the world in terms of development. He added that the recent announcements made by the UAE Government on the labour front would put the country on top in terms of providing labour rights and facilities.

M/s Penna Cement Industries based in Hyderabad is one of the most successful industrial groups in India with an installed capacity of more than four million tons of cement and over 150 MW of power generation capacity.

Sheikh Omar bin Saqr Al Qasimi, Chairman of RAK Ruler's Private Affairs Department, Sheikh Salem bin Sultan Al Qasimi, Chairman of RAK Civil Aviation Department, Yash Sinha, Consul General of India, and a number of dignitaries were present at the function.