JSW Cement has stepped up its plans in the Middle East. The company has given a corporate guarantee worth $29.24 million, close to AED 107.4 million, to help its UAE arm secure a loan. First Abu Dhabi Bank will provide the funds. The money will go toward building a new cement grinding plant in Fujairah.
The loan will fund a plant with a capacity of 1.65 million tonnes a year. This unit forms a key part of JSW Cement's plan to grow its presence in the Middle East. The company said the guarantee was issued on normal commercial terms, treating the deal like any other market transaction.
This kind of guarantee does not mean cash leaves the company right away. But it does create a liability on paper. If the UAE unit cannot repay the loan, JSW Cement will have to step in and cover the amount.
The Fujairah project carries an estimated cost of $39 million. JSW Cement plans to fund it through a mix of debt and equity. Once ready, the plant should help the company serve customers across the region faster and at lower cost.
This move fits into a larger pattern. JSW Cement has been looking beyond India to grow its output. Demand for cement rises with new construction and infrastructure work across many countries. Backing its UAE subsidiary with financing support is one more step in that direction.
The company appears focused on building a wider international base. This latest guarantee shows how it plans to expand its manufacturing footprint while keeping its operations spread across multiple markets.