- Jindal SAW to invest $118M for Middle East iron and steel expansion.
- $105M seamless pipe plant planned in Abu Dhabi for the oil & gas sector.
- Saudi joint ventures set up for HSAW pipes and ductile iron production.
Jindal SAW Ltd announced that its board has approved plans to make three new overseas investments for up to a total of $118 million, which the company has described as part of its strategy to establish a footprint in the Middle East iron and steel sector.
The largest of the planned three projects will be the formation of a wholly owned step-down subsidiary in Abu Dhabi, UAE, for the creation of a seamless pipe manufacturing unit.
The proposed production capacity of the facility is 300,000 tonnes per year, with the market being defined primarily to the oil and gas sector in the MENA(Middle East North Africa) region.
Jindal SAW plans to invest as much as $105 million in the Abu Dhabi unit, and the project is expected to take around three years to complete. Jindal SAW's investment in Saudi Arabia will be done through its wholly owned subsidiary, Jindal Saw Holdings FZE, into two new joint ventures.
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The first Saudi joint venture will be with Buhur for Investment Company LLC to set up a plant to manufacture helically spiral welded (HSAW) pipes. This venture will have a 51% interest by Jindal SAW for an investment of as much as $10 million, with the facility taking around 2 years to complete.
The second joint venture in Saudi Arabia is with RAX United Industrial Company for the establishment of a unit dedicated to the manufacturing of ductile iron pipe. A 51% ownership stake will also be held in the venture, with a maximum capital investment of up to $3 million. It is anticipated that this project will be completed within 12 to 18 months.
The three entities involved in these projects have not yet been created, and Jindal SAW will obtain the required regulatory and government clearances in due course. The company has indicated that all investments will be in cash and are part of its longer-term objective to increase its operational footprint within the Gulf region's industrial supply chain.