Agreement signed to establish first integrated steel plate manufacturing complex in Saudi Arabia

Agreement signed to establish first integrated steel plate manufacturing complex in Saudi Arabia

DHAHRAN — Aramco, Baoshan Iron & Steel Co., Ltd. (Baosteel), and the Public Investment Fund (PIF) have signed a shareholders’ agreement to establish an integrated steel plate manufacturing complex in Saudi Arabia.

Subject to customary regulatory approvals and closing conditions, the joint venture complex is expected to be located in Ras Al-Khair Industrial City, one of the four new Special Economic Zones recently announced by Crown Prince and Prime Minister Mohammed Bin Salman, chairman of the Council of Economic and Development Affairs (CEDA).

The complex would bring together Aramco’s unrivaled energy and industrial services ecosystem, Baosteel’s advanced steel plate industry capability and PIF’s strong financial capabilities and investment expertise.

It would be the first facility of its kind in the Kingdom and the GCC region, advancing the regional steel industry ecosystem.

The project aims to enhance the domestic manufacturing sector through localizing the production of heavy steel plates, transferring knowledge and creating export opportunities.

The facility is expected to have a steel plate production capacity of up to 1.5 million tons per year.

It would also be equipped with a natural gas-based direct reduced iron (DRI) furnace and an electric arc furnace, which aims to reduce CO2 emissions from the steel-making process by up to 60%