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Saudi, Chinese partners to kick USD 1 bn more into planned steel plate producer: China’s Baosteel, Aramco, and the Public Investment Fund (PIF) have committed to more than double their investments in a joint venture focused on steel plate production in Saudi Arabia, Reuters and Bloomberg picked the story.
Background: Baosteel, a unit of the world’s largest steelmaker, China Baowu Steel Group, signed a shareholders’ agreement with Aramco and the PIF in May 2023 to set up a JV in Ras Al-Khair City, with Baosteel owning a 50% stake, and Saudi Aramco and PIF taking 25% each. The plant is expected to go online at the end of 2026.
The details: Baosteel will increase its investment to USD 1 bn, up from USD 437.5 mn, while Aramco and the PIF will raise theirs to USD 500 mn each from USD 218.8 mn. The shareholding structure will remain unchanged.
By the numbers: The project is set to have an annual capacity of 2.5 mn tons of direct reduced iron and 1.5 mn tons of steel plate. The plant will target the MENA oil and gas, shipbuilding, and construction industries.
