RIYADH: India’s multinational conglomerate Essar Group will invest SR15 billion ($4 billion) in a steel plant in Saudi Arabia, as the trade ties between countries deepen.
Citing a senior company official, Business Standard reported the works of the integrated steel plant will begin this year, and it is expected to be completed by 2025.
The plant will be located in Ras Al-Khair Industrial City on Saudi Arabia’s east coast, and it will have a production capacity of 4 million tons per annum.
Amar Kapadia, general manager for corporate planning at Essar, said that the company has formally applied to the Saudi Industrial Development Fund and the evaluation process is progressing steadily.
“Through multiple rounds of discussion, additional information required for SIDF to complete technical, market and credit evaluations has been shared. We hope to conclude the process in the next few months,” said Kapadia.
The new plant will also have two direct reduced iron plants, each having a production capacity of 2.5 million tons a year.
Founded by Shashi Ruia and Ravi Ruia in 1969, Essar Group has international investments across four areas covering the energy, metals and mining, infrastructure and engineering, procuring and construction verticals.