Jindal announced $1bn Sohar steel plant expansion
Oman stands to become major regional steel player though expansion
Jindal Shadeed Iron & Steel LLC has announced a capital investment of $1 billion to expand its integrated steel complex at the Port of Sohar.
Indian company Jindal Steel and Power Ltd bought Oman-based Shadeed Iron and Steel Co. for $464 million last year in a bid to expand its reach in to the Middle East and north African regions.
D K Saraogi, Executive President & Head Oman, Jindal Shadeed Iron & Steel LLC, said the project is set to make an immense contribution to Oman's GDP and socioeconomic development.
In addition to providing employment for Omanis in a number of highly skilled areas, the venture also has the potential to stimulate investments in downstream and ancillary industry, driving economic development and social advancement in and around the port city of Sohar.
The plant, which has an annual capacity of 1.5 million tonnes, came on stream on January 1 2011. Phase Two includes a $200m development that will add an electric arc furnace, , Ladle Furnace and Continuous Casting Machine (billet/bloom caster). Work on the second phase expansion is expected to commence next month.
Phase 3 will see an additional $800m spent expanding plant capacity to 3.6 million tonnes per annum. W S Atkins has been appointed to conduct a feasibility study and market survey, which is due for completion next month.