In New Delhi, Essar Group is awaiting final approvals to start investing around $4.5 billion in building a low-carbon steel plant in Saudi Arabia, its top official Prashant Ruia said.
Approvals are expected any day now, after which the conglomerate will begin work on the 4 million tonne per annum steel plant along with port facilities at Ras Al-Khair in Saudi Arabia.
"We still don't have all the final approvals," said Ruia, director of Essar Capital, which manages the group's investment portfolio, in an interview with .
The plant will meet the domestic demand for steel in Saudi Arabia.
"Saudi Arabia is going through a big growth phase, a lot of the steel today is imported into Saudi Arabia. So this is basically a domestic plant," he said.
The oil-rich kingdom is considering becoming an electric vehicle manufacturing hub, manufacturing over 3 lakh cars a year by 2030. Essar is looking to tap into demand for steel for such cars as well as other consumer goods industries.
Construction of the Essar plant will take between three and three and a half years.
Essar, which became debt-free two years ago after selling some infrastructure assets, is investing in decarbonization and green mobility projects to drive the next phase of growth.
The Saudi Arabia plant will be Essar Group's first steel project outside India. Previously, the metals-to-infrastructure conglomerate owned and operated an integrated steel plant in Hazira, Gujarat, which it lost to ArcelorMittal in an insolvency battle.
Work on the project will begin after receiving all necessary approvals, Ruia said, adding that the company already has the land for the multi-million dollar project.
According to additional information provided by Essar Group, the integrated steel project will be implemented through its subsidiary Green Steel Arabia on a 1,000-acre plot in the Ras Al-Khair province of Saudi Arabia with an estimated total project cost of 4.5 billion Dollars.
The plant will integrate electric arc furnace (EAF) and gas-based direct reduced iron (DRI) technology to primarily meet Saudi Arabia's local needs.
Essar also plans to invest in the construction of two dedicated berths at the port of Ras Al-Khair, exclusively for its steel project.
Ruia also hoped to re-enter the Indian steel industry. He said the group is looking for a suitable time to enter the Indian steel industry.
"It is a very, very interesting space to be in. We have been doing it for 25-30 years. Once the right opportunity comes, we will definitely look at it. We are trying to build a plant in Odisha for iron ore pellets, but a complete steel plant is not possible," he added.
Approvals are expected any day now, after which the conglomerate will begin work on the 4 million tonne per annum steel plant along with port facilities at Ras Al-Khair in Saudi Arabia.
"We still don't have all the final approvals," said Ruia, director of Essar Capital, which manages the group's investment portfolio, in an interview with .
The plant will meet the domestic demand for steel in Saudi Arabia.
"Saudi Arabia is going through a big growth phase, a lot of the steel today is imported into Saudi Arabia. So this is basically a domestic plant," he said.
The oil-rich kingdom is considering becoming an electric vehicle manufacturing hub, manufacturing over 3 lakh cars a year by 2030. Essar is looking to tap into demand for steel for such cars as well as other consumer goods industries.
Construction of the Essar plant will take between three and three and a half years.
Essar, which became debt-free two years ago after selling some infrastructure assets, is investing in decarbonization and green mobility projects to drive the next phase of growth.
The Saudi Arabia plant will be Essar Group's first steel project outside India. Previously, the metals-to-infrastructure conglomerate owned and operated an integrated steel plant in Hazira, Gujarat, which it lost to ArcelorMittal in an insolvency battle.
Work on the project will begin after receiving all necessary approvals, Ruia said, adding that the company already has the land for the multi-million dollar project.
According to additional information provided by Essar Group, the integrated steel project will be implemented through its subsidiary Green Steel Arabia on a 1,000-acre plot in the Ras Al-Khair province of Saudi Arabia with an estimated total project cost of 4.5 billion Dollars.
The plant will integrate electric arc furnace (EAF) and gas-based direct reduced iron (DRI) technology to primarily meet Saudi Arabia's local needs.
Essar also plans to invest in the construction of two dedicated berths at the port of Ras Al-Khair, exclusively for its steel project.
Ruia also hoped to re-enter the Indian steel industry. He said the group is looking for a suitable time to enter the Indian steel industry.
"It is a very, very interesting space to be in. We have been doing it for 25-30 years. Once the right opportunity comes, we will definitely look at it. We are trying to build a plant in Odisha for iron ore pellets, but a complete steel plant is not possible," he added.
