Essar Group is on the verge of receiving final approvals to initiate a $4.5 billion investment in constructing a low-carbon steel plant in Saudi Arabia, as reported by Prashant Ruia, director of Essar Capital. The plant, which is designed to produce 4 million tonnes of steel annually, will be situated in Ras Al-Khair and will include port facilities to support its operations.

According to Ruia, while the final approvals are still pending, they are anticipated soon, allowing Essar to commence the project. The primary objective of the plant is to satisfy Saudi Arabia’s domestic steel demand, thereby reducing the nation’s reliance on imported steel.

Saudi Arabia is currently undergoing significant economic growth and has set ambitious goals to become an electric vehicle manufacturing hub, aiming to produce over 300,000 cars annually by 2030. Essar plans to meet the rising steel demand for this burgeoning market, as well as other consumer goods industries within the kingdom.

The construction timeline for the plant is projected to be three to three and a half years. This venture represents Essar Group’s inaugural steel project outside of India. Previously, the conglomerate owned and operated an integrated steel plant in Hazira, Gujarat, which was acquired by ArcelorMittal following an insolvency battle.

Essar, which successfully became debt-free two years ago after divesting certain infrastructure assets, is now channeling investments into decarbonisation projects and green mobility initiatives. These efforts are part of the group’s strategy to fuel its next phase of growth and contribute to sustainable industrial development.