China's Baosteel, Saudi Aramco and PIF set up JV to build steel plant in Saudi Aramco
Business
China's Baosteel, Saudi Aramco and PIF set up JV to build steel plant in Saudi Aramco
BEIJING (Reuters) - China's biggest listed steelmaker, Baoshan Iron and Steel Co (600019.SS), said on Monday it has signed agreements with Saudi Aramco (2222.SE) and Public Investment Fund (PIF) to build a steel plate manufacturing joint venture.
Baosteel will take 50% stake in the joint venture, while Saudi Aramco and PIF will take 25% stake each, Baosteel said in a statement.
The joint venture will build a steelmaking manufacturing base in Saudi Arabia, with the designed annual capacity of 2.5 million tonnes of direct reduced iron and 1.5 million tonnes of steel plate, it said, adding that the project remains subject to regulatory approval.
Baosteel aims to put the manufacturing base into operation by the end of 2026, according to the statement.
The project will be equipped with a direct reduced iron furnace and an electric arc furnace fueled by natural gas, which will reduce carbon dioxide emissions by over 60% compared to the blast-furnace-based steelmaking process, it added.
Baostseel is a subsidiary of China Baowu Steel Group, the world's largest steelmaker.
