Jindal Saw Ltd. has announced a capital expenditure plan totaling up to USD 118 mln to expand its presence in the Middle East’s iron and steel sector. The company’s board has approved three international investments aimed at tapping into growing regional demand.
The largest investment, up to USD 105 mln, will go toward establishing a 100pct owned step-down subsidiary in Abu Dhabi, UAE. The facility will manufacture seamless pipes with an annual capacity of 300,000 tons, targeting the oil and gas sector in the MENA region. The project is expected to be completed within three years.
In Saudi Arabia, Jindal Saw will invest in two joint ventures through its subsidiary, Jindal Saw Holdings FZE. The first JV, with Buhur for Investment Company LLC, will set up a helically spiral welded (HSAW) pipe plant. Jindal will hold a 51pct stake and invest up to USD 10 mln, with a two-year timeline.
The second JV, with RAX United Industrial Company, will establish a ductile iron pipe manufacturing unit. Jindal will again hold a 51pct stake, committing up to USD 3 mln. This project is expected to be completed within 12 to 18 months.
All three ventures are pending incorporation and will proceed following regulatory and governmental approvals, the company stated.
Jindal Saw, a global manufacturer of steel pipe products and fittings, operates facilities in India, the USA, Europe, and the UAE. It specializes in SAW and spiral pipes for energy transport, carbon, alloy, and seamless pipes for industrial use, and ductile iron pipes for water and wastewater. The company also runs a low-grade iron ore mine and beneficiation plant in Rajasthan, India.