China’s Baoshan Iron & Steel Co. (Baosteel) is reassessing its planned steel joint venture in Saudi Arabia amid rising geopolitical risks linked to tensions in the Middle East, according to a Reuters report.
The project, agreed in 2024 with Saudi Aramco and the Public Investment Fund (PIF), involves the development of a steel plate manufacturing complex in Ras Al Khair Industrial City. Baosteel holds a 50pct stake, while Aramco and PIF each hold 25pct.
The planned facility will include a 2.5 mln tons per year direct reduced iron (DRI) unit, 1.7 mln tons per year crude steel capacity, and 1.5 mln tons per year plate production, based on natural gas-fed DRI and electric arc furnace (EAF) technology.
The company said it has become more cautious regarding the investment given the current regional situation, and has recalled staff previously deployed to Saudi Arabia.