Published On:August 18 2023
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Essar to source pellets for Saudi plant from Bahrain Steel.

Essar Group has signed an agreement with Foulath subsidiary, Bahrain Steel, for supply of high-grade iron-ore pellets for its greenfield steel plant, Green Steel Arabia, being set up in Saudi Arabia.

Bahrain Steel will deliver 4 million tonnes per annum (mtpa) of DR-grade pellets to Essar Group.

It is the only GCC-owned pellet producer and leading supplier of high-quality DR grade pellets to all integrated steel producers in the region.

Dilip George, Group CEO, Foulath Holding, said Bahrain Steel’s deal with Essar is a testament to the company’s commitment to meet the growing demand for DR pellets in the GCC.

“We are proud to collaborate with Essar Group to support the first green steel project in Saudi Arabia,” he said.

Naushad Ansari, Country Head for Essar Group in KSA, said it is looking to invest about $4.5 billion in setting up an integrated steel plant in Ras Al Khair, Saudi Arabia.

This LOI, post final contracts being agreed and signed, will secure 50 per cent raw material supply of iron ore pellets for the Saudi steel plant. If all goes as planned, commercial production is expected to begin in 2027, he said.

The Essar project, the region’s first green steel project, will aim to set the global benchmark in the reduction of CO2.

The project will have a direct reduced iron (DRI) capacity of 5 mtpa, comprising two modules of 2.50 mtpa each, 4 mtpa hot strip capacity, and 1 million tonnes of cold rolling capacity, along with galvanizing and tin plate lines.

In line with the Kingdom’s ongoing demand for steel products and the targets set by Vision 2030, the facility will cater to all major steel consuming industries, including construction, oil & gas, automotive, packaging and general engineering.


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