Agreement Signed to Establish Saudi Arabia’s 1st Integrated Steel Plate Manufacturing Complex

Agreement Signed to Establish Saudi Arabia’s 1st Integrated Steel Plate Manufacturing Complex

Saudi Aramco, one of the world’s leading integrated energy and chemicals companies, Baoshan Iron & Steel Co., Ltd. (Baosteel), the world’s leading steel conglomerate, and the Public Investment Fund (PIF) signed on Monday a shareholders’ agreement to establish an integrated steel plate manufacturing complex in the Kingdom of 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 Prince Mohammed bin Salman bin Abdulaziz, Crown Prince, Prime Minister and Chairman of the Council of Economic and Development Affairs.

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, said a press statement.

It would be the first facility of its kind in the Kingdom and the Gulf Cooperation Council (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