The Hindu Business Line : Tatas, Ruias mull plants in Egypt

Mumbai May 14 The Tatas and the Ruias are examining the possibility of building steel plants in Egypt. The latter are also planning a refinery in that country, according to a Reuters report.

Tata Steel is examining the possibility of building a steel plant in Egypt at an estimated cost of $900 million, it added.

The company has already started discussions with the Egyptian Government, said the report, quoting Mr Ashraf Diwidar, adviser to the Industrial Development Authority in Egypt.

The Essar group plans to invest $3.4 billion in a refinery of 300,000 barrels per day capacity and $590 million in a steel plant in Egypt, according to the report.

The Egyptian Government could approve the proposal in a few weeks, it added.

A spokesperson for the Tata group said that discussions with the Egyptian Government are indeed on, but at a very preliminary stage. The Essar response was on similar lines: "As a Group, we keep looking at growth opportunities. This is one such proposal being looked at. Hence, it is too premature to comment on the same."

Both Tata Steel and the Ruias have been announcing global expansions in recent times.

Tata Steel acquired Anglo-Dutch steelmaker Corus for $12 billion, while the Essar group has been moving to delist domestic concerns and increasing their overseas interests.

Essar Oilfields Services Ltd, which is in the oilfields and drilling business, has set up its regional base at Dubai Maritime City.

The Group recently agreed to acquire US-based Minnesota Steel and Canada-based Algoma Steel.

Essar Steel already operates a cold rolling complex in Indonesia.

Also, it has finalised plans to set up an integrated steel plant in Trinidad and Tobago and a hot strip mill in Vietnam.

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