News: Raysut Cement on Wednesday said that its gas supply station at its plant in Salalah has been commissioned and commercial operation has already been started. This will enable the company to increase the production capacity of cement to 130,000 to 140,000 tonnes of cement per annum, which will lead to increase the company's profitability, according to a disclosure statement posted on MSM website.   Our view: The modernisation project led to an increase in the cement production capacity by c3.8% at its Salalah plant (from current 3.45mn tonnes to 3.58mn tonnes). Even though the news is positive, we do not expect it to have any impact on our estimates. With a current capacity utilisation rate of 72% at its Salalah plant, bearing in mind we estimate only a gradual recovery of its capacity utilisation over the medium term, we are not expecting the marginal increase in capacity to make any contribution over the medium term. (Company disclosure, Times of Oman, Sameer Kattiparambil)   Raysut Cement Co: OMR1.500 as of 21 September 2016, Rating: Neutral, FV: OMR1.363 per share, MCap: USD789 million, RCCI OM / RAYC.OM