Essar Steel to set up 2.5-lt processing centre in Dubai

Essar Steel to set up 2.5-lt processing centre in Dubai

The Ruias-led Essar Steel will set up a steel processing unit in Dubai with an annual production capacity of 2.5 lakh tonne with a view to expand its market in the the Gulf region.

"The Jebel Ali Free Zone (Jafza) of Dubai has just announced that it will be home to a steel processing and service centre for Indian multinational conglomerate Essar Group's subsidiary Essar Steel Middle East FZE," the Jebel Ali special business zone said in an email statement.

"Located in the Jebel Ali Free Zone South, Essar Steel Middle East will be a 2.5-lt per annum processing centre," the mail added.

The investment in the venture could not be ascertained. Though a project of a similar size in the country would cost the company about Rs 75 crore.

The steel maker, which already one of the largest steel exporters from the country to the region, will set up the processing unit along with a service centre at Jafza in the region through its subsidiary Essar Steel Middle East.

"With the venture, we intend to expand our existing market as well as customer base," an Essar Steel spokesperson said, while confirming the development.

The statement added, "the new facility is designed to serve Essar's expanding regional client base in consumer sectors such as automotive, construction, engineering and shipbuilding."

"Establishing a base in the Jebel Ali Free Zone gives us a strategic platform to implement our growth plans in the region," said Essar Steel director B Sivakumar.

Essar Steel has already secured a long-term lease over 25,000sq meter land in the free zone.

Essar Steel, at present, has a annual production capacity of about 5 million tonne and runs various service centres in the country with a combined capacity of 2.5 mtpa. It will be shipping its produce from the Hazira plant to the proposed processing unit.