Published On:June 25 2024
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Essar Awaits Final Approvals to Begin $4.5 Billion Steel Plant in Saudi Arabia

Essar Group is poised to begin work on a new $4.5 billion steel plant in Saudi Arabia once final approvals are secured, targeting completion within three to three-and-a-half years. The facility, located at Ras Al-Khair, will produce 4 million tonnes of steel annually and include dedicated port facilities.

The move comes as Saudi Arabia aims to establish itself as a hub for electric vehicle manufacturing, projecting production of over 300,000 cars annually by 2030. Essar aims to capitalize on this demand for steel, essential not only for automotive manufacturing but also for other consumer goods industries.

Essar Group, which achieved debt-free status two years ago after divesting some infrastructure assets, is now focusing on decarbonization projects and green mobility to drive its next phase of growth. This Saudi plant marks Essar's first steel venture outside India, following the loss of its Hazira steel plant to ArcelorMittal in an insolvency battle.

According to Essar Group, the integrated steel project will be executed through its subsidiary, Green Steel Arabia, spanning 1,000 acres in Ras Al-Khair province. The plant will utilize gas-based direct reduced iron (DRI) and electric arc furnace (EAF) technologies primarily to meet local Saudi Arabian demand.

In addition to the steel plant, Essar plans to construct two dedicated berths at Ras Al-Khair port exclusively for its operations. Prashant Ruia, speaking on behalf of Essar Group, expressed optimism about potentially re-entering the Indian steel industry, noting the group's readiness to seize appropriate opportunities as they arise.

HBL





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