Essar Group is awaiting final approvals to invest about USD 4.5 bln in building a low-carbon steel plant in Saudi Arabia, according to top official Prashant Ruia. Once approvals are received, the conglomerate will begin constructing the 4 mln ton per year steel plant and port facilities at Ras Al-Khair.
“We still haven’t got all the final approvals,” said Ruia, director of Essar Capital, which manages the group’s investment portfolio, in an interview with PTI.
Saudi Arabia aims to become an electric vehicle manufacturing hub, targeting more than 300,000 cars annually by 2030. Essar plans to meet the demand for steel for these cars and other consumer goods.
The Essar plant, expected to take three to three-and-a-half years to build, will be the group’s first steel project outside India. Previously, Essar operated an integrated steel plant in Hazira, Gujarat, which was lost to ArcelorMittal in an insolvency battle.
The project will commence once all necessary approvals are received, and the company already has the land secured. The integrated steel project will be executed through Essar’s subsidiary, Green Steel Arabia, on a 1,000-acre land parcel in Ras Al-Khair, with an estimated cost of USD 4.5 bln.
Green Steel Arabia will feature a direct reduced iron (DRI) capacity of 5 mln tons per annum, consisting of two modules of 2.5 mln tons each, along with a 4 mln ton per annum hot strip capacity. It will also include 1 mln ton per annum of cold rolling capacity, as well as galvanizing and tin plate lines.
Additionally, Essar plans to invest in constructing two dedicated berths at Ras Al-Khair port exclusively for its steel project.
