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.