Vulcan Steel seeks $2.5B for Oman project talks
Steel

Vulcan Steel seeks $2.5B for Oman project talks

According to two individuals familiar with the matter, it was reported that Vulcan Steel, a company owned by industrialist Naveen Jindal, is currently engaged in discussions with export credit agencies (ECAs) from multiple countries to secure $2.5 billion in funding for their upcoming green steel plant in Oman.

As per the aforementioned sources, it was stated that the funding for the plant's construction will exclusively come from non-bank sources. In an earlier interview, a senior executive from the group mentioned that the company plans to invest over $3 billion into the project, which is based in Duqm.

The ECAs will play a role in financing the procurement of capital goods for the plant, which will predominantly be imported from overseas into Oman. Typically, ECAs provide funding for purchases made by foreign buyers from their respective home countries, thus supporting export activities.

The plant, anticipated to be operational by 2027, is expected to have a manufacturing capacity of 5 million tonnes per year. It will be a part of Jindal Shadeed Iron and Steel LLC, a company that Vulcan Steel acquired in 2020.

The project has been undertaken with a focus on the European steel markets, as the continent has a preference for lower emission raw materials in order to achieve its decarbonisation objectives. Vulcan Steel sees potential in the demand for green steel, as it is considered a leading solution for manufacturing companies to reduce their carbon footprint.

Green steel possesses the same properties as conventional steel but is produced without the use of fossil fuels, resulting in a minimal carbon footprint. Currently, it is not available on an industrial scale.

Companies worldwide, particularly in developed nations, are racing to develop the necessary technology and produce green steel on a large scale. H2 Green Steel, a Swedish firm, is set to become the first major green steel manufacturer once their plant, currently under construction, becomes operational by 2025.

Vulcan Steel acquired Jindal Shadeed Iron and Steel LLC from JSPL for an enterprise value of $1 billion. In 2020, JSPL made the decision to divest from the asset as part of its strategy to reduce debt and focus on its core steel business in India. JSPL held a 99.9% stake in the Oman asset, which it purchased for $464 million in 2010.

Also read:
Shree Cement plans Rs 60 billion investment for capacity
Crisil: Cement prices may decrease 1-3% despite strong

According to two individuals familiar with the matter, it was reported that Vulcan Steel, a company owned by industrialist Naveen Jindal, is currently engaged in discussions with export credit agencies (ECAs) from multiple countries to secure $2.5 billion in funding for their upcoming green steel plant in Oman. As per the aforementioned sources, it was stated that the funding for the plant's construction will exclusively come from non-bank sources. In an earlier interview, a senior executive from the group mentioned that the company plans to invest over $3 billion into the project, which is based in Duqm. The ECAs will play a role in financing the procurement of capital goods for the plant, which will predominantly be imported from overseas into Oman. Typically, ECAs provide funding for purchases made by foreign buyers from their respective home countries, thus supporting export activities. The plant, anticipated to be operational by 2027, is expected to have a manufacturing capacity of 5 million tonnes per year. It will be a part of Jindal Shadeed Iron and Steel LLC, a company that Vulcan Steel acquired in 2020. The project has been undertaken with a focus on the European steel markets, as the continent has a preference for lower emission raw materials in order to achieve its decarbonisation objectives. Vulcan Steel sees potential in the demand for green steel, as it is considered a leading solution for manufacturing companies to reduce their carbon footprint. Green steel possesses the same properties as conventional steel but is produced without the use of fossil fuels, resulting in a minimal carbon footprint. Currently, it is not available on an industrial scale. Companies worldwide, particularly in developed nations, are racing to develop the necessary technology and produce green steel on a large scale. H2 Green Steel, a Swedish firm, is set to become the first major green steel manufacturer once their plant, currently under construction, becomes operational by 2025. Vulcan Steel acquired Jindal Shadeed Iron and Steel LLC from JSPL for an enterprise value of $1 billion. In 2020, JSPL made the decision to divest from the asset as part of its strategy to reduce debt and focus on its core steel business in India. JSPL held a 99.9% stake in the Oman asset, which it purchased for $464 million in 2010. Also read: Shree Cement plans Rs 60 billion investment for capacity Crisil: Cement prices may decrease 1-3% despite strong

Next Story
Infrastructure Urban

Budget 2025: Key Highlights

On February 1, 2025, Finance Minister Nirmala Sitharaman presented the Union Budget for the financial year 2025-26 in Parliament. This marks the eighth budget by Sitharaman, making her the first finance minister in India’s history to present so many budgets. It is also the first budget of Prime Minister Narendra Modi’s third term.Sitharaman emphasised that the budget focuses on driving growth towards a “Viksit Bharat” (Developed India), with the country maintaining its position as the fastest-growing major economy. She outlined the government’s commitment to inclusive development, im..

Next Story
Infrastructure Urban

Budget 2025-26: Industry reactions

Union Finance Minister, Nirmala Sitharaman announced Budget 2025-26 today. The government has planned a number of strategic initiatives which will drive inclusive growth, boost economic growth and provide an impetus to to India’s competitive edge on the global stage.Here’s what industry has to say about various announcements and initiatives announced in the budget:Real Estate“The Union Budget 2025 is a game-changer, reinforcing India's commitment to inclusive and sustainable urban growth. The SWAMIH Fund 2 with Rs 15,000 crore will accelerate the completion of stalled housing projects, b..

Next Story
Infrastructure Urban

Budget 2025: Key Announcements Impacting Real Estate

Key takeaways for the real estate sector include:• Income tax relief for the middle class: The finance minister announced zero income tax for individuals earning up to Rs 12 lakh annually, providing a major consumption boost. This move is also expected to strengthen demand for affordable housing. Additionally, the new income tax bill will retain nearly 50 per cent of existing provisions while introducing personal tax reforms and rationalising TDS and TCS regimes by streamlining rates and thresholds.• Tax benefits for residential property investors: Investors can now claim nil valuation for..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000