The largest project entails the establishment of a wholly owned subsidiary in Abu Dhabi, United Arab Emirates, to create a seamless pipe manufacturing facility with a capacity of 300,000 tonnes annually.
This unit will cater to the oil and gas sector within the MENA region. The investment for this initiative is projected to be as much as $105 million, with an estimated completion timeframe of around three years.
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In Saudi Arabia, Jindal Saw plans to invest in two joint ventures via its subsidiary Jindal Saw Holdings FZE. The first JV will partner with Buhur for Investment Company LLC to establish a helically spiral welded (HSAW) pipe plant, where Jindal will hold a 51% stake with an investment of up to $10 million. This project’s estimated timeline is two years.
The second Saudi joint venture is with RAX United Industrial Company for a ductile iron pipe manufacturing facility, also involving a 51% stake and a capital commitment of up to $3 million. It is anticipated to take 12 to 18 months to complete.
The three companies being established are yet to be incorporated. Required regulatory and governmental approvals will be sought as necessary. Each investment will be funded in cash.
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Shares of Jindal SAW Ltd closed at ₹231.90, rising by ₹13.90, or 6.38%, on the BSE.
