‎Aramco, Baosteel, PIF sign agreement to build first steel plate complex in Saudi Arabia

‎Aramco, Baosteel, PIF sign agreement to build first steel plate complex in Saudi Arabia

Saudi Aramco, one of the world’s leading integrated energy and chemicals companies, Baoshan Iron & Steel Co., Ltd. (Baosteel) and the Public Investment Fund (PIF) signed a shareholders’ agreement to establish an integrated steel plate manufacturing complex in Saudi Arabia.

The joint venture (JV) complex is expected to be located in Ras Al-Khair Industrial City, subject to customary regulatory approvals and closing conditions, the Affairs, Saudi Aramco said in an emailed joint statement to Argaam.

The complex 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% compared to a traditional blast furnace. The DRI plant would be compatible with hydrogen without the need for major equipment modifications, potentially reducing CO2 emissions by up to 90% in