Nov. 9 (Bloomberg) -- JSW Steel Ltd., India’s third-biggest producer, began making steel reinforcing bars at its plant in Georgia, the first step in an investment plan that may include oil exploration and hydropower.

“This is our first investment in Georgia,” JSW Managing Director Sajjan Jindal told reporters today at the plant in the eastern city of Rustavi. “We’re seriously considering expanding our business opportunities in Georgia,” he said, adding that the company’s “next moves” include investment in the oil sector in eastern Georgia and hydropower stations.

JSW acquired the Soviet-era plant in Rustavi in 2006 and invested $70 million to upgrade it, Ilia Zedelashvili, manager of GeoSteel, said in an interview at the plant today. GeoSteel is a joint venture of JSW and Georgian Steel Group Holding.

Zedelashvili said GeoSteel plans to produce as much as 200 metric tons of rebar a year for the local market and for export to countries such as Iran. The plant employs 500 people, he said.

The European Bank for Reconstruction and Development has invested $14 million in the project, according to the bank.

Jindal was joined in a ceremony at the plant today by Georgian President Mikheil Saakashvili.

To contact the reporter on this story: Helena Bedwell in Doha at hbedwell@bloomberg.net

Last Updated: November 9, 2009 06:58 EST