India’s Essar Group has plans to invest $4bn (SAR15bn) to build an integrated flat steelworks plant in Ras Al-Khair Industrial City of Saudi Arabia, reported Economic Times.
The facility is slated to break ground by the end of this year.
Construction of the facility, with an annual production capacity of 4 million tonnes, is expected to complete by the end of 2025.
The facility will have continuous casting and hot strip capacity, 1 million tonnes cold rolled coil capacity, a tin plate line, and two direct reduced iron (DRI) plants, each with a 2.5 million tonnes annual capacity.
In October last year, Essar signed a memorandum of understanding with the National Industrial Development Centre (NIDC) of Saudi Arabia,
In December 2021, an agreement was also signed by the company with the Royal Commission for Jubail and Yanbu (RCJY) for land allocation.
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In an interview to an international publication, Essar general manager for corporate planning Amar Kapadia said: “We plan to award an LSTK (Lump Sum Turnkey) contract with project drivers of schedule, cost, quality and safety with the balance of the need to meet local content requirements even during the project execution phase.
“Therefore, all procurement would be the contractor’s responsibility to achieve these objectives.”
The privately-held Essar Group has global investments across four areas – energy, metals and mining, infrastructure and EPC verticals.
The company has an annual turnover of more than $13bn.
Image: The facility is slated to break ground by the end of this year. Credit: Janno Nivergall from Pixabay .