Indian group wins $230m Oman steel plant contract

24 August 2016

Company to build balance of plant at new mini-mill in Sohar

Indian-based Shriram EPC has won a $230m contract on a steel mill project in Sohar, northern Oman, the company announced on the Bombay Stock Exchange.

The engineering, procurement and construction (EPC) contract was awarded by Oman’s Moon Iron & Steel Company (Misco) and covers the balance of plant for the mini-mill project.

The work will be executed by Shriram’s Sharjah-based subsidiary over the next 32 months, the company said.

Misco has previously said that he plant will produce 1.2 million tonnes a year (t/y) of billets, of which 700,000 t/y will make hot rolled steel to produce re-bar and 500,000 t/y will be sold to the market.

Misco has investments from Gulf Investment Corporation, Oman Development Fund and Sultan’s Special Forces Pensions Fund. The project debt is funded by Omani banks.

“Given the slowdown in the steel and metals business in India with capacity expansion on hold, this overseas order will enable us to maintain and strengthen our position in this sector. It will also give us a strong base to expand our business in the Middle East market,” said T Shivaraman, managing director and CEO of Shriram EPC.

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