Essar Group to Invest $4.5 Billion in Low-Carbon Steel Plant in Saudi Arabia

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Essar Group to Invest $4.5 Billion in Low-Carbon Steel Plant in Saudi Arabia

Essar Group to Invest in Low-Carbon Steel Plant in Saudi Arabia

Essar Group is gearing up to invest approximately $4.5 billion in constructing a low-carbon steel plant in Saudi Arabia. The project, awaiting final approvals, will see the conglomerate develop a 4 million tonne per year steel plant alongside port facilities at Ras Al-Khair.

"We still haven't got all the final approvals," said Prashant Ruia, director of Essar Capital, in an interview. Once approvals are granted, the project is expected to take three to three-and-a-half years to complete.

The plant aims to cater to the growing domestic steel demand in Saudi Arabia, which is currently met through imports. Additionally, with the kingdom aiming to become an electric vehicle manufacturing hub, Essar sees an opportunity to supply steel for this burgeoning industry.

This project marks Essar Group's first steel venture outside India, following the loss of their integrated steel plant in Hazira, Gujarat, to ArcelorMittal. The company, now debt-free, is focusing on decarbonization projects and green mobility to fuel its future growth.

Essar also plans to invest in constructing two dedicated berths at Ras Al-Khair port specifically for the steel project. Furthermore, Ruia expressed interest in re-entering the Indian steel industry, stating that the group is actively seeking the right opportunity to do so.