On June 9, Jindal SAW Ltd announced that its board has cleared plans for three new overseas investments, collectively worth up to $118 million, as part of the company’s strategy to expand its footprint in the Middle East’s iron and steel industry.
The largest of the three projects involves establishing a wholly owned step-down subsidiary in Abu Dhabi, UAE, for setting up a seamless pipe manufacturing unit.
The proposed facility will have an annual production capacity of 300,000 tonnes, and will cater primarily to the oil and gas sector in the MENA (Middle East and North Africa) region.
Jindal SAW expects to invest up to $105 million in the Abu Dhabi unit, with a project completion timeline of around three years. In Saudi Arabia, the company will invest through its wholly owned subsidiary, Jindal Saw Holdings FZE, into two new joint ventures.
The first Saudi JV will be formed with Buhur for Investment Company LLC to establish a plant for manufacturing helically spiral welded (HSAW) pipes. Jindal SAW will hold a 51% stake in this venture, with an investment commitment of up to $10 million. The facility is expected to be completed over two years.
