China’s Baoshan Iron and Steel Co. (Baosteel) said construction is advancing on its USD 4 bln integrated steel plate complex in Saudi Arabia, the company’s first overseas steel base. Located in Ras al-Khair Industrial City, the project is a joint venture with Saudi Aramco and the Public Investment Fund (PIF), established in May 2023.
Baosteel said it is optimising the project plan to lower investment costs and is in talks with OEM suppliers to localise equipment, cut manufacturing expenses, and strengthen distribution. While Saudi Arabia’s fixed asset costs are high, its operating costs remain low, providing a strategic advantage, the company noted.
The facility will feature a 2.5 mln tons per year direct reduced iron furnace, 1.7 mln tons per year crude steel capacity, and 1.5 mln tons per year plate production, using natural gas-based DRI and electric arc furnace technology. This setup is expected to reduce CO2 emissions by up to 60pct compared to traditional blast furnaces.
The plant will target the oil and gas, shipbuilding, and construction sectors across the Middle East and North Africa.
