Posted on 29 Jul 2024
Baoshan Iron & Steel Co (Baosteel), the Shanghai-listed arm of the world's largest steelmaker China Baowu Steel Group, announced on July 25 a more than doubling of its investments in a joint-venture integrated heavy steel plate mill in Saudi Arabia. The investments will increase to $1 billion, up from the initial commitment of $437.5 million.
According to the listed steelmaker's disclosure on the Shanghai Stock Exchange, the joint venture will have Baosteel owning a 50% stake, while the world's top crude oil producer Saudi Aramco and the Saudi government-backed Public Investment Fund (PIF) will each hold a 25% stake, contributing $500 million each.
Plans for the joint venture were established in May 2023, when Baosteel signed agreements with Saudi Aramco and PIF to establish operations in Ras Al-Khair Industrial City, a special economic zone on the kingdom's northeast coast, as Mysteel Global reported.
The Saudi-based joint venture aims to have an annual capacity of 2.5 million tonnes of direct reduced iron (DRI), 1.7 million tonnes of steel, and 1.5 million tonnes of heavy plates by the end of 2026. It will primarily contribute steel plate supplies to the oil, gas, shipbuilding, and construction sectors across the Middle East and North Africa region, according to Baosteel's statement.
This new steel project aligns with both China's "Belt and Road Initiative" and Saudi Arabia's Vision 2030 plan, underscoring the strategic economic cooperation between the two nations, Mysteel Global learned.
Source:Mysteel Global
