HomeMarket NewsStocks NewsJindal SAW to invest $118 million in UAE and Saudi Arabia for pipe manufacturing expansion
Shares of Jindal SAW Ltd ended at ₹231.90, up by ₹13.90, or 6.38%, on the BSE.
Homegrown Jindal SAW Ltd on Monday (June 9) said the board has approved three new international investments totalling up to $118 million, aimed at strengthening its presence in the Middle East’s iron and steel sector.
The largest of the projects involves setting up a 100% owned step-down subsidiary in Abu Dhabi, United Arab Emirates, to establish a seamless pipe manufacturing facility with a capacity of 300,000 tonnes per annum.
The unit will serve the oil and gas sector in the MENA region. The investment in this project is expected to be up to $105 million, with a timeline of approximately three years for completion.
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In Saudi Arabia, Jindal Saw will invest in two joint ventures through its subsidiary Jindal Saw Holdings FZE. The first JV will be with Buhur for Investment Company LLC to set up a helically spiral welded (HSAW) pipe plant. Jindal will hold a 51% stake, investing up to $10 million. The estimated timeline for this project is two years.
The second Saudi joint venture is with RAX United Industrial Company for a ductile iron pipe manufacturing facility. This project also involves a 51% stake and a capital commitment of up to $3 million. It is expected to be completed within 12 to 18 months.
All three companies to be established are yet to be incorporated. The necessary regulatory and government approvals will be obtained as required. Each investment will be made in cash.
Also Read: Jindal SAW Q2 Results | Net profit jumps 32% to ₹499 crore, revenue up 2% to ₹5,572 crore
Shares of Jindal SAW Ltd ended at ₹231.90, up by ₹13.90, or 6.38%, on the BSE.
