Vulcan Steel, owned by industrialist Naveen Jindal, is engaging in discussions with multiple export credit agencies (ECAs) to secure USD 2.5 bln in funding for its upcoming environmentally-friendly steel plant in Oman, according to sources familiar with the matter.
The plant, slated to be financed entirely through non-bank sources, is part of Vulcan Steel’s ambitious plans to invest over USD 3 bln in the project based in Duqm. The ECAs will contribute to the purchase of capital goods, which will mostly be imported for the plant’s construction in Oman.
Expected to be operational by 2027, the plant will have a production capacity of 5 mln tons per year and will operate under Jindal Shadeed Iron and Steel LLC, acquired by Vulcan Steel in 2020.
The new facility will focus on manufacturing flat steel products for industries such as automotive, wind turbines, and domestic appliances.
With a specific emphasis on European steel markets, the project aligns with the continent’s preference for low-emission raw materials to achieve decarbonization targets. Vulcan Steel sees green steel as a leading solution for companies aiming to reduce their carbon footprint, thus anticipating a strong demand potential.
Vulcan Steel acquired Jindal Shadeed Iron and Steel LLC from JSPL for an estimated enterprise value of USD 1 bln. JSPL sold the asset in 2020 to streamline its financials and concentrate on India’s primary steel industry.
