Jindal Shadeed plans over $1 billion expansion of Sohar steel complex (US)

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MUSCAT — Jindal Shadeed Iron & Steel LLCJindal Shadeed Iron & Steel LLC , which commenced commercial operations last month, envisages capital investments totalling around $1 billion in the planned expansion of its integrated steel complex at the Port of Sohar. The expansion, according to a top executive, will position Oman as a major supplier of steel in the region, as well as secure the supply of a strategic commodity of vital importance to the Sultanate’s continuing economic and infrastructure modernisation. D K Saraogi, Executive President & Head Oman, Jindal Shadeed Iron & Steel LLCJindal S
News | Profile | Officers , 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, thus driving economic development and social advancement in and around Sohar.Jindal Shadded’s 1.5 million tonnes per annum (MTPA) capacity Direct Reduction Iron (DRI) plant — the centerpiece of the roughly $500 million steel complex at Sohar — came on stream on January 1, 2011. In Phase 2 of the project’s development, estimated to cost $200 million, Jindal ShadeedJindal ShadeedLoading… plans to enhance the state-of-the-art plant’s capabilities with the addition of the following: 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.In Phase 3, Jindal ShadeedJindal ShadeedLoading… aims to expand the capacity of the steel mill to a world-scale 3.6 MTPA at an estimated additional cost of $800 million. Well-known consultancy firm W S Atkins, which has been commissioned to undertake a feasibility study and market survey in this regard, is due to submit its findings by next month.Emphasising the company’s eagerness to embark on the project’s expansion, Saraogi said: “Our prestigious Integrated Steel Plant is in the advance stage of ordering. We are planning to go initially for 1.5 MTPA finished steel and expand further to 3.6 MTPA.”Set on a 1.2 million sq metre plot within the industrial port, the Jindal-ShadeedJindal-ShadeedLoading… project is billed as among the most modern steels mills of its kind in the Middle East. The plant was engineered by Kobe Steel of Japan, based on cutting edge Hotlink technology developed by renowned US steelmaker Midrex Technologies.rial production at the Sohar facility began in early December The plant’s successful start-up, a full four months ahead of the targeted March 2011 timeframe, was a testament to the acclaimed steel-producing credentials of the project’s backers — India-based Jindal Steel and Power Limited.In remarks to the Observer, Saraogi said the commercial launch of the DRI plant — a full four months ahead of schedule — was made possible by the “support and patronage rendered by all the ministries of His Majesty’s government” at every stage in the project’s development.He also attributed the project’s successful startup to a combination of factors: the hard work and tenacity of a committed workforce, positive thinking, the conviction that no task is impossible, and the “love and faith” of the Omani people towards the Jindal-ShadeedJindal-ShadeedLoading… project.The Direct Reduction Iron plant is presently operating at 70 per cent capacity. “We are going to install our 4th briquetting machine within 7 to 8 months and we expect to reach full capacity after that,” the Executive President stated. Jindal Steel is one of India’s biggest steel producers with a significant presence also in other sectors such as mining, power generation, oil and gas, and infrastructure. In recent years, the company has expanded its steel, power and mining businesses to key areas of the world, particularly in Asia, South Africa and South America. A member of the well-diversified $12 billion OP Jindal Group, Jindal Steel boasts an annual turnover in excess of $2.3 billion.

© Oman Daily Observer 2011

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