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India plans deal with Saudi on steel plant
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Tuesday, 16 Oct 2012

Construction Week reported that India’s state owned Rashtriya Ispat Nigam Limited is looking to set up USD 3.6 billion steel plant as JV with local firm Rajhi Steel.

Rashtriya views the Kingdom as a lucrative market given that steel consumption increased to around 12 million tonnes in 2011 and it imports more than half of it, going by data from the World Steel Association. The new gas based plant would have a capacity of 3 million tonnes per annum.

Rajhi Steel has a production capacity of over 3 million tonnes a year and sells most of its product within its home market which is the fastest moving steel consuming market in the Middle East with an estimated compound annual growth rate of 19.5% from now until 2015.

A source close to the deal said that RINL is in talks with Rajhi Steel for 3 million tonnes per annum plant in Saudi Arabia. The integrated plant would produce both long and flat products. RINL has forwarded non disclosure agreement for signing. The cost of setting up the plant would be shared in the ratio of shareholding between the two parties and take five years to bring online.

Source - Construction Week


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