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Jindal Saw to invest USD 118 million to expand presence in the Middle East

Jindal Saw has announced a INR 980 crore (USD 118 million) investment in the Middle East’s iron and steel sector. A pipe manufacturing plant with a capacity of 300,000 tons per annum will be set up in Abu Dhabi. Additionally, two new joint ventures in Saudi Arabia will increase production capacity. Following the announcement, shares surged up to 11%, with technical analysts projecting a target price of INR 275 (USD 3.29) in the near term.

Jindal Saw to invest USD 118 million to expand presence in the Middle East

Jindal Saw has emphasized its commitment to strengthening its footprint in the iron and steel sector across the Middle East by approving three new international investments totaling INR 980 crore (USD 118 million). The company aims to enhance production capacity in the region, focusing particularly on solutions for the oil and gas industry.

The largest investment involves establishing a pipe manufacturing facility in Abu Dhabi with an annual capacity of 300,000 tons. This project, with a budget of INR 875 crore (USD 105 million), is expected to be completed within the next three years and will primarily serve energy projects across the MENA region.

In Saudi Arabia, two joint ventures are planned. The first, in partnership with Buhur for Investment Company LLC, will set up a helically spiral welded (HSAW) pipe manufacturing plant with an investment of INR 83 crore (USD 10 million), expected to become operational within two years. The second joint venture with RAX United Industrial Company will focus on producing ductile iron pipes with an investment of INR 25 crore (USD 3 million). Jindal Saw will hold a 51% of shares in both ventures.

Following the announcement, Jindal Saw shares increased to 11% intraday. The stock has gained over 16% in the past two trading sessions, and technical analysts have indicated a potential near-term target price of INR 275 (USD 3.29).

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