One billion dollars! China's Baosteel doubles investment in Saudi Aramco

Chinese steel manufacturer Baosteel Group recently announced that it will jointly invest with Saudi Aramco and the Public Investment Fund (PIF) to establish a steel plate joint venture, with the investment amount more than doubling. The annual production capacity of steel production facilities is 2.5 million tons of direct reduced iron and nearly 1.7 million tons of steel

Saudi Aramco and PIF signed an agreement with Baosteel in May 2023 to establish a steel plate manufacturing complex in Saudi Arabia. The joint venture will build a factory in Ras Al khair Industrial City. Lasherr is one of the four new economic zones recently announced by Saudi Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud.

This cooperation not only marks a significant breakthrough in Baosteel Group's global strategic layout, but also demonstrates the firm commitment of Saudi Aramco and PIF to the future of green energy and sustainable development. The steel manufacturing complex jointly built by both sides is not only a deep integration of technology and capital, but also another milestone in the cooperation between China and Saudi Arabia in the fields of energy transformation and infrastructure construction.

With the increasing global emphasis on low-carbon environmental protection, Baosteel Group's investment has also incorporated the concept of green development. By introducing advanced electric arc furnace steelmaking technology, the carbon emissions in traditional steelmaking processes have been significantly reduced, providing a more environmentally friendly solution for industrial development in the Middle East region. This measure not only helps to enhance the international competitiveness of joint ventures, but also sets a new benchmark for green development in Saudi Arabia and even the entire Middle East region.

Looking ahead, Baosteel Group's steel joint ventures with Saudi Aramco and PIF are expected to achieve win-win outcomes in multiple aspects. On the one hand, by localizing production, reducing logistics costs, improving product competitiveness, and better serving industries such as oil, gas, shipbuilding, and construction in the Middle East and North Africa region; On the other hand, leveraging Saudi Arabia's abundant natural gas resources and Baosteel's technological advantages, we will promote the green transformation of the steel industry and contribute to addressing global climate change.