Muscat – Jindal Shadeed Group, a leading steel producer in the Middle East region, will invest more than US$3bn to develop a mega steel project in Special Economic Zone at Duqm (SEZAD).
Slated to be the largest plant of its kind within SEZAD to produce green steel, the plant will utilise renewable energy sources in its manufacturing operations.
“Jindal Shadeed is investing more than US$3bn to develop this mega steel project in Duqm. We have already obtained the necessary approvals to secure land for our green hydrogen ready steel project,” Harssha Shetty, CEO of Jindal Shadeed Group, said in a press statement released by SEZAD.
He said the company’s goal is to produce more than 5mn metric tonnes of green steel on an annual basis that will create over US$800mn annual in-country value addition. The project is being built on an area of approximately 2sqkm in the concession zone at the Port of Duqm.
The plant will supply high quality steel products to automobile, wind energy and consumer durables sectors among others.
“There is a booming demand for green steel from ESG (environmental, social and governance) conscious customers around the world, especially in Europe and Asia, who have already committed significant reduction in Scope 3 emissions by 2030,” Shetty added.
The project was announced at a ceremony that included the signing of a memorandum of understanding (MoU) and a land allocation agreement held under the auspices of H E Dr Ali bin Masoud al Sunaidy, Chairman of Public Authority for Special Economic Zones and Free Zones (OPAZ), in the presence of a number of high-ranking government and private sector officials.
The MoU was signed by Ahmed bin Hassan al Dheeb, deputy chairman of OPAZ, and Jindal Shadeed’s Harssha Shetty. The land reservation agreement was signed by the Jindal Shadeed and Reggy Vermeulen, chief executive officer of the Port of Duqm.
In line with its development efforts, Jindal Shadeed also signed an MoU with the centralised utility provider, Marafiq, to provide the plant with the utilities necessary to operate the project such as water services, seawater for cooling purposes, and other Marafiq services. The agreement was signed by Talal al Lawati, vice president of commercial operations at Marafiq.
Commenting on the agreements, Dheeb expressed his delight in partnering with Jindal Shadeed to develop its manufacturing facility in Duqm. He reaffirmed that a project of this caliber would be an added value to the heavy industries cluster in SEZAD and would play a vital role in the development of Duqm as a key industrial hub.
Reggy Vermeulen said, “This is a great step for all of us, and we are thrilled to see such a project happen in Port of Duqm – a successful pairing of Jindal Shadeed’s expertise in steel production and the Port of Duqm’s logistical prowess.“