Essar to procure $5 billion capital goods from China
By Our Corporate Bureau | 11 Sep 2007
Mumbai: The Essar Group is planning to procure capital goods from China, worth $5 billion, in the next three years, to execute various projects in steel, power, telecom, shipping and construction.
Essar proposes to source the goods through Global Supplies (UAE) FZE, a subsidiary of Essar Global Ltd (EGL), which is setting up a new office in Beijing.
"We will use our office in Beijing to be a global sourcing base to procure capital goods required for our steel, energy, power, communications, shipping, telecommunications and construction businesses," Essar Global chairman Shashi Ruia said.
The Essar group has finalised an investment plan of over $16 billion over the next four years in capacity enhancement and technological upgrades in various businesses. These projects involve over $11 billion spending on capital goods.
Essar Power Holdings Ltd is expanding its capacity from the present 1,200 MW to 4,800 MW, for which $2 billion worth of capital equipment is required. Essar Energy Holdings Ltd plans to expand its capacity from 10.50 million tonnes per annum (mtpa) to 32 mtpa, which will require another $2 billion worth of capital machinery.