The approvals are expected anytime now, after which the conglomerate will start working on the 4 million tonnes per year steel plant along with port facilities at Ras Al-Khair in Saudi Arabia.

The oil-rich Kingdom is eyeing becoming an electric vehicle manufacturing hub, manufacturing more than 3 lakh cars annually by 2030. Essar is looking to tap into the demand for steel for such cars as well as for other consumer goods industries. The Essar plant will take three to three-and-a-half years to build.

Essar, which turned debt-free two years ago after selling some infrastructure assets, is investing in decarbonisation projects and green mobility to fuel the next growth phase.

The Saudi plant will be Essar Group’s first steel project outside India. The metals-to-infrastructure conglomerate earlier owned and operated an integrated steel plant in Hazira, Gujarat, which it lost to ArcelorMittal in an insolvency battle.

The work on the project will start after receiving all the necessary approvals, Ruia said, adding that the company already has the land for the multibillion-dollar project.

As per additional information provided by Essar Group, the integrated steel project will be executed through its arm, Green Steel Arabia, over a land parcel of 1000 acres in Ras Al-Khair province of Saudi Arabia at an estimated total project cost of USD 4.5 billion.

The plant will integrate gas-based direct reduced iron (DRI) and electric arc furnace (EAF) technology to cater primarily to the local needs of Saudi Arabia.

Essar also plans to invest in constructing two dedicated berths at Ras Al-Khair port, exclusively for its steel project.

Ruia also hoped for a re-entry into the Indian steel industry. He said the group is looking for an appropriate time to make its entry into the Indian steel industry.

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Video and Text Credit: PTI