First Integrated Steel Plate Production Complex Agreement Signed by Aramco, Baosteel, and PIF
Riyadh – Asdaf News:
A shareholders’ agreement to create an integrated steel plate manufacturing complex in the Kingdom of Saudi Arabia has been signed by Aramco, one of the world’s top integrated oil and chemicals businesses, Baosteel, the world’s largest steel company, and the Public Investment Fund (PIF).
The joint venture complex is anticipated to be situated in Ras al-Khair Industrial City, one of the four new Special Economic Zones recently announced by His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince, Prime Minister, and Chairman of the Council of Economic and Development Affairs. This is subject to customary regulatory approvals and closing conditions.
The complex would combine the unique energy and industrial services ecosystem of Aramco, the cutting-edge steel plate manufacturing prowess of Baosteel, and the strong finance and investment skills of PIF. In the Kingdom and the GCC, it would be the first facility of its kind, advancing the ecosystem of the local steel industry. Through the localization of the production of heavy steel plates, knowledge transfer, and the creation of export opportunities, the project seeks to improve the domestic manufacturing sector.
Up to 1.5 million tons of steel plates are anticipated to be produced annually at the factory. A direct reduced iron (DRI) furnace powered by natural gas and an electric arc furnace, which seeks to cut CO2 emissions from the steel-making process by up to 60% in comparison to a conventional blast furnace, would also be included. Future CO2 emissions from the DRI plant might be reduced by up to 90% without the need for significant equipment improvements because it is compatible with hydrogen.
