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Oman’s Steel Industry Booming Under the Jindal Group

6 Jul 2023

An industrial powerhouse with a global presence in steel, Jindal Group is a leading player in the Global Steel sector. It is bolstering its commitment to the Sultanate of Oman by undertaking several strategic investments aimed at fostering socio-economic growth and supporting the nation’s transition to a green, circular economy. Working in tandem with His Majesty Sultan Haitham’s Vision 2040 plan to reduce the country’s dependency on the oil and gas sector while diversifying into non-oil-based manufacturing, the group is flying the flag high. These investments under the Vulcan International Holding Company include Jindal Shadeed Iron and Steel, Sohar Steel, and Vulcan Pelletizing Plant in Sohar, and in Duqm Vulcan Green Steel.

Jindal Shadeed Iron and Steel (JSIS) facility in Sohar has expanded its production to reach a capacity of 2.4 million metric tons per annum (MTPA).

In addition to Jindal Shadeed Iron and Steel and Vulcan Green Steel, the group is actively involved in other ventures in the Sultanate’s steel industry through executing a backward integration strategy. Notably, the company is developing the Sohar 6 million TPA Pelletising Plant, equipped with Metso Outotec technology, Civil piling work is underway, and the plant is scheduled to commence production by end of 2024. Furthermore, Submerged Arc Furnace plant producing 48,000 MT Ferro alloys further integrates JSIS value chain.

The group is also investing in a pilot Carbon Capture Plant at the Jindal Shadeed Iron and Steel facility in Sohar , expected to be completed by the end of 2023. This unlocks significant decarbonization potential for JSIS operations  and showcases the group’s dedication to environmental stewardship and reducing carbon emissions.

JSIS is also working with the right partners to invest in renewable energy capacity to further decarbonise our production facilities. 

With the new projects at the Sohar facility between 2023- 2024, Vulcan’s total investments in the area will exceed USD 1.5 billion, emphasising its commitment to in-country value creation and job opportunities, and the forex outflow will be reduced by USD 500 million. 

Commenting on the company’s ICV strategies, Harssha Shetty, Chief Executive Officer of JSIS, said, “We are committed to His Majesty’s 2040 vision and we are working towards aligning a comprehensive ICV agenda with national priorities, apart from the ongoing investments in assets and technology. Steel builds homes, bridges, nations and lives. We are executing our unique ‘mine to metal’ philosophy in all our operations which aims at complete integration of the steel value chain to maximise our ICV contribution and local employment in the Sultanate. We are blessed to have a very visionary and progressive government who are supportive to such initiatives. The core of our operations and Future projects is our unflinching commitment to safety, environment, Quality and social sustainability.”

Jindal Shadeed’s Corporate Social Responsibility (CSR) programs are complementary to these initiatives. Through the ‘Steel of Oman’ campaign, the company has demonstrated its support for Oman’s passion for football and its potential in the global football arena. Partnerships with the Oman Football Association (OFA) and Ali Al-Habsi’s Academy for Football have led to the establishment of nine under-14 football training centres, fostering the development of young talent. JSIS CSR policy actively engages in community initiatives related to the youth development, SME partnerships, and safe home construction practices. With its exceptional track record in steel manufacturing and strong community-centric values, JSIS continues to drive the Sultanate’s progress and competitiveness on the global stage.

The group has also committed USD 3 billion to develop a mega Green steel project in the Sultanate of Oman. The project, known as Vulcan Green Steel, will be established in the Special Economic Zone at Duqm (SEZAD) and will encompass a 5 million metric tons per annum (MTPA) green hydrogen-ready steel plant. It is a marquee initiative to combat climate change and produce green steel on a large scale. The plant will be powered entirely by renewables and green hydrogen, making it one of the largest green steel facilities globally.

The group has also recently acquired Sohar Steel (SS) plant in Sohar. SS is one of the major producers of new generation high strength steel reinforcement bars in the Sultanate. Adjacent to the seaport of Sohar and equipped with advanced facilities like a Bendotti Walking Beam Reheating Furnace and Automatic Tension Control, the plant produces 500,000 tons per annum of high-quality steel products, including 8 mm to 32 mm rebars. The plant was under shutdown for the past 3 years. Through reopening it, we helped in saving an approximate of 200 jobs of locals in the area.

With these strategic investments, Vulcan Investments and the Jindal Steel Group is poised to strengthen Oman’s steel industry, drive economic growth, and contribute to the nation’s sustainability goals. The company remains committed to its partnership with the Sultanate and its vision for a prosperous and environmentally conscious future.

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