Essar is investing over SAR 16.87 billion ($4.5 billion) for 4 million t/y of continuous casting and hot strip capacity, 1 million t/y of cold rolled coil capacity and a tin plate line. The new plant will also include two direct reduced iron plants, each with a capacity of 2.5 million t/y.
Naushad Ansari, Country Head for Saudi Arabia at Essar Group, said in a statement: "This agreement will secure 50% feedstock supply of iron ore pellets for the Saudi steel plant, once the final contracts are agreed and signed. If all goes according to plan, we expect commercial production to start from 2027."
Dilip George, CEO of Bahrain Steel's parent company Foulath, said the agreement is a testament to our commitment to meet the growing demand for DR pellets from the steel industry in the GCC.