Raysut Cement Company (RCC) has acquired UAE's Pioneer Cement at a price of $172 million, thus representing it one of the biggest cement manufacturers in the Gulf area.

According to the Chief Executive Officer of RCCR, Mohammed Ahmed al Dheeb, this makes Raysut one of the biggest cement producers in the Gulf region.

The acquisition of Pioneer Cement has build in further 1.7 million tons, expandable to 1.8 million tons, to the already existent capacity of RCC, turning it into approximately 4.7 million tons every year.

Meanwhile, the Omani firm made an acquisition of 100% ownership of the company barring a single share (among 55,000 shares of Dh1, 000 per share) for a price of more than $172 million.

The total amount is being funded via long-term loans from the consortium of bankers headed by Bank Dhofar.

Pioneer Cement, which had begun its commercial activities back since 2006 in Ras Al Khaima, has increased its cement production from 0.23 million tons to 1.6 million tons during the year 2009 within a duration of three years.

Even Pioneer made sales of 1.6 million tons in the year 2009.