China's Baosteel, the largest publicly listed steel producer in China, announced today that it has signed agreements with Saudi Aramco and the Saudi Public Investment Fund (PIF) to establish a joint venture for manufacturing steel plates. Baosteel stated that it will acquire a 50% stake in the joint venture, while both Aramco and the PIF will each hold 25%.
Under the joint venture, a steel manufacturing facility will be constructed in Saudi Arabia, with a designed annual capacity of 2.5 million tons of direct reduction iron (sponge iron) and 1.5 million tons of steel plates. The project is still subject to regulatory approvals.
The venture will be equipped with a direct reduction iron furnace powered by natural gas and an electric arc furnace, which will reduce carbon dioxide emissions by more than 60% compared to emissions from traditional steelmaking using a blast furnace. Baosteel aims to have the manufacturing base operational by the end of 2026.
