Baosteel, Aramco and PIF Collaborates to Establish Integrated Steel Plate Facility

SEATTLE (Scrap Monster): Leading Chinese steelmaker Baoshan Iron & Steel Co., Ltd. (Baosteel) has joined hands with Aramco and the Public Investment Fund (PIF) in signing a shareholders’ agreement towards establishment of an integrated steel plate manufacturing complex in Saudi Arabia.

The proposed joint venture complex will be located at Ras al-Khair Industrial City and is subject to customary regulatory approvals and closing conditions. It would be the first of its kind facility in Saudi Arabia and in the entire GCC region. It aims to localize the production of heavy steel plates, thus providing huge boost to the country’s domestic manufacturing sector.

The facility will have a steel plate production capacity of up to 1.5 million tons per year. It will feature a natural gas-based direct reduced iron (DRI) furnace and an electric arc furnace, thus contributing to reduced carbon dioxide emissions. The DRI plant would be compatible with hydrogen too.

The project will contribute positively to the localization of the steel industry, create jobs and deliver local economic prosperity in the country, said Zou Jixin, Chairman of Baosteel said.

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