Essar Group invests $4 billion in a steel plant in Saudi Arabia

The Indian concern Essar Group plans to invest $4 billion in the construction of a steel plant in Saudi Arabia. Business Standard reports about it.

The project to be started by the end of 2022 and to be completed in 2025, said Amar Kapadia, the general manager of corporate planning at Essar.

The new integrated flat mill will have continuous casting and hot strip capacity, cold-rolled coil capacity, and a galvanized sheet line in the industrial city of Ras Al-Khair. The total production capacity of the enterprise will be 4 million tons of products per year.

The new enterprise will also include two plants for the direct reduced iron (DRI) production with a capacity of 2.5 million tons per year.

Essar signed a memorandum of understanding with the Saudi Arabia’s National Industrial Development Centre (NIDC) in October 2021, and an agreement with the Royal Commission for Jubail and Yanbu (RCJY) for land allocation in December 2021.

According to Essar’s general manager of corporate planning, the company has officially submitted an application to the Saudi Industrial Development Fund (SIDF), which is evaluating the project. Several rounds of discussions have already taken place, and SIDF has been provided with additional information needed to conduct technical, market and credit assessments. The process to be completed in the next few months.

Essar plans to contract LSTK with project drivers of schedule, cost, quality and safety with the balance of the need to meet local content requirements.

” The group has international investments in four industries, including steel and mining sectors. The group’s annual turnover is more than $13 billion.

As GMK Center reported earlier, Saudi Arabia plans to build three steel plants for $9.3 billion. The total production capacity of the new steel enterprises will be about 6.2 million tons.