Chinese steelmaker Baoshan Iron and Steel Company (Baosteel) will more than double its investment in a steel plate joint venture with Saudi partners Aramco and the Public Investment Fund (PIF). Baosteel will invest USD 1 bln for a 50pct stake, while Aramco and PIF will each invest USD 500 mln for a 25pct stake.
In a regulatory filing, Baosteel also announced a reduction in financing collateral for the joint venture to nearly USD 1.1 bln from USD 1.3 bln. Aramco and PIF signed an agreement with Baosteel in May 2023 to build a steel plate manufacturing complex in Ras al-Khair Industrial City, one of four new special economic zones unveiled by Crown Prince Mohammed bin Salman.
The facility will have an annual production capacity of 2.5 mln tons of direct reduced iron, nearly 1.7 mln tons of steel, and 1.5 mln tons of steel plates. Equipped with a natural gas-based direct reduced iron furnace and an electric arc furnace, it aims to cut CO2 emissions by up to 60pct compared to traditional blast-furnace methods. The project will primarily supply the oil and gas, shipbuilding, and construction sectors in the Middle East and North Africa.