Vulcan
Steel, a privately held business owned by tycoon Naveen Jindal, is in talks
with export credit agencies (ECAs) from many nations to get $2.5 billion in
finance for its future green steel facility in Oman.
The
money for the plant’s construction would come from non-bank sources. The
capital products for the facility, which will be mostly imported from outside
Oman, will be purchased with the support of the ECAs.
The
factory, which is anticipated to be operational by 2027, will be able to
produce 5 million tonnes annually. The Jindal Shadeed Iron and Steel LLC, which
Vulcan Steel purchased in 2020, will include it.
For
an estimated $1 billion in enterprise value, Vulcan Steel purchased Jindal
Shaded Iron and Steel LLC from JSPL. To deleverage its financial sheet and
concentrate on India’s primary steel industry, JSPL decided to sell the asset
in 2020. In the Oman asset, which it had purchased for $464 million in 2010,
JSPL maintained a 99.9% share.
The
only integrated steelworks in Oman are now operated by Jindal Shadeed. The
projected 5 mtpa green steel mill will be the second integrated steelworks in
the nation of the Gulf once it is finished.