"We still haven't got all the final approvals," Ruia, director of Essar Capital, which manages the group's portfolio of investments, said in an interview with PTI.
The plant will meet domestic steel demand in Saudi Arabia.
"Saudi Arabia is going through a large growth phase, a large part of steel today is getting imported into Saudi Arabia. So this is basically a domestic plant," he said.
The oil-rich kingdom is eyeing becoming an electric vehicle manufacturing hub, manufacturing more than 3 lakh cars annually by 2030. Essar is looking to tap into the demand for steel for such cars as well as for other consumer goods industry.
The Essar plant will take three to three-and-a-half-years to build.
Essar, which turned debt-free two years back after selling some infrastructure assets, is investing in decarbonisation projects and green mobility to fuel the next growth phase.
The Saudi Arabia plant will be Essar Group's first steel project outside India. The metals-to-infrastructure conglomerate earlier owned and operated an integrated steel plant in Hazira, Gujarat, which it lost to ArcelorMittal in an insolvency battle.
The work on the project will start after receiving all the necessary approvals, Ruia said, adding the company already has the land for the multibillion dollar project.
As per additional information provided by Essar Group, the integrated steel project will be executed through its arm Green Steel Arabia over a land parcel of 1,000 acre in Ras Al-Khair province of Saudi Arabia at an estimated total project cost of USD 4.5 billion.
The plant will integrate gas-based direct reduced iron (DRI) and electric arc furnace (EAF) technology to cater primarily to local needs of Saudi Arabia.
Essar also plans to invest in constructing two dedicated berths at Ras Al-Khair port, exclusively for its steel project.
Ruia also hoped for a re-entry into the Indian steel industry. He said the group is looking for an appropriate time to make its entry into the Indian steel industry.
"It's a very very interesting space to be in. We've done it for 25-30 years. Once the right opportunity comes we will absolutely look at it. We are trying to build a plant in Odisha for iron ore pellets but it's not a full steel plant," he added.
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