The USD 4.5 billion project involves the construction of a low-carbon steel plant having 4 million tonnes per year capacity, along with port facilities at Ras Al-Khair in Saudi Arabia.
Jun 27, 2024
The Essar Group is awaiting certain approvals from the Saudi Government to start construction of a low-carbon steel plant in the oil-rich kingdom at a total investment of USD 4.5 billion.
Speaking to reporters, Mr. Prashant Ruia, Director, Essar Capital, said that the approvals were expected anytime now, adding that they have already secured a land bank of 1,000 acres for the multibillion-dollar project.
This will be the company’s first steel project outside India, which involves construction of a steel plant having 4 million tonnes per year capacity, along with port facilities at Ras Al-Khair in Saudi Arabia.
Saudi Arabia has massive plans to become an electric vehicle manufacturing hub, producing more than three lakh cars on a yearly basis by the end of this decade. Essar is looking to tap into the demand for steel for such cars as well as for other consumer goods industries.
As per Mr. Ruia, Saudi Arabia is currently going through a large growth phase. A large part of steel today is getting imported into Saudi Arabia. This will basically be a domestic plant.
He said the integrated steel project will be executed through Essar’s arm Green Steel Arabia over a land parcel of 1,000 acres in Ras Al-Khair province of Saudi Arabia at an estimated total project cost of USD 4.5 billion.
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The plant will integrate gas-based direct reduced iron (DRI) and electric arc furnace (EAF) technology to cater primarily to local needs of Saudi Arabia. Essar also plans to invest in constructing two dedicated berths at Ras Al-Khair port, exclusively for its steel project.
Mr. Ruia further said that the group was looking for the right opportunity to make its re-entry into the Indian steel industry. He said the group has done it for 25-30 years. Essar Group was looking to build a plant in Odisha for iron ore pellets, however, it will not be a full steel plant, he added.
