Indian steelmakers are investing $6 billion in the Gulf countries

Despite the crisis in steel production around the world, every large company tries to find a new sales markets. It is known that the largest steel company in India JSPL plans to invest 6 billion dollars in the Gulf countries. And the interest of Indian steelmakers in the region due to the fact that now in the Gulf countries comes rapid construction of railways and highways.

According to Nevin Jindal, the main shareholder of the metallurgical company Jindal Steel and Power, you need as soon as possible to hold free markets in the Persian Gulf, as in the very near future it is planned the construction boom. And this company is willing to spend $6 billion for investment in the development of local industry. Nevin Jindal announced his thoughts during the opening of the restored steel plant in Oman, which can melt up to 2 million tons of steel per year.
Also a new plant for the production of steel reinforcement is building in Oman. Indian investors have invested in the construction of it $1.2 billion. Once the plant begins its work, it will be able to compete with Chinese manufacturers. According to the plan, after the start of production at full capacity, Steel JSPL will be able to produce up to 1.5 mln tons of steel bars per year.

By the way, some experts support the presumption of innocence Jindal. In their view, the demand for steel in the region in the near future will rise to 15 million tons per year. Over the past two months, the cost of steel products in the GCC countries increased from $360 to $420 per ton. And the volume of imports, at the moment, is 4 million tons of steel per year.

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