The Essar Group is awaiting certain approvals from the Saudi Government to start construction of low-carbon steel plant in the kingdom at a total investment of $4.5 billion. The company has already secured a land bank of 1,000-acre for the multibillion-dollar project. This will be Essar Group’s first steel project outside India. It will take around three years for the project to get up and running.
“Saudi Arabia is going through a large growth phase, a large part of steel today is getting imported into Saudi Arabia. So this is basically a domestic plant,” said Prashant Ruia, Director, Essar Capital.
Saudi Arabia has massive plans to become an electric vehicle manufacturing hub, producing more than 3 lakh cars on yearly basis by the end of this decade. Essar is looking to tap into the demand for steel for such cars as well as for other consumer goods industry. Essar also plans to invest in constructing two dedicated berths at Ras Al Khair port, exclusively for its steel project.
