CHINA’S BAOSTEEL SAYS WORK PROGRESSING ON $4BLN STEEL PLANT IN SAUDI ARABIA
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China’s Baoshan Iron and Steel Co. (Baosteel) said work is progressing on the $4 billion integrated steel plate manufacturing complex in Saudi Arabia, which will have a production capacity of 2.5 million tonnes.
“The Saudi project is our first overseas steel base development project,” the company said in a statement published on WeChat.
Saudi Aramco, Baoshan and the Public Investment Fund (PIF) signed a shareholders’ agreement to establish an integrated steel plate manufacturing complex in May 2023.
The joint venture was officially registered in Saudi Arabia in November 2024, the statement said.
Baoshan said that work is ongoing to optimise the project plan to reduce the total investment.
“While Saudi Arabia’s fixed asset investment costs are high, its operating costs are relatively low, which is the underlying rationale behind our investment,” the Chinese steel maker said.
The company is in talks with OEM suppliers regarding the localisation of equipment, reducing manufacturing costs, and increasing distribution.