Essar Steel bags $14 mn contract from UAE firm

Essar Steel today said it has joined the league of the top plate mills of Japan and European Union by securing a $14 million contract from National Petroleum Construction Company, UAE, for building offshore platforms.

"Essar Steel has made a breakthrough in securing a prestigious order from National Petroleum Construction Company for building offshore platforms, thus becoming the first entity in India to join the league of top plate mills of Japan and European Union," the Ruias-owned firm said in a statement.

It said the order pertains to supply of API grade plates valued at $14 million (Rs 63 crore) for the hydrocarbon sector from National Petroleum Construction Company, UAE, and will be executed by July, 2011.

"Essar Steel is the first Indian steel company and only the sixth in the world to get approved for the use of the American Petroleum Institute (API) monogram on 2H, 2W and 2Y grades of steel plates," it added.

This approval will not only help the company serve the domestic market, but also open up opportunities to cater to international markets, including the West Asia and Europe.

National Petroleum Construction Company has won a major engineering, procurement and construction contract in India to build offshore platforms for ONGC at the offshore Mumbai High Field, the company said.

Essar claimed that it is the only steel mill in India which has developed API standard hi-tensile grades up to 63.5-mm for deep-sea offshore platform applications.

The company's plate mill, set up at a cost of about Rs 2,000 crore, has an annual production capacity of 1.5 million tonnes, capable of producing 5-metre wide plates conforming to global standards.

The firm earlier bagged an order from the Defence Ministry for supplying heavy duty steel plates for the Indian Navy's war and supply ships.