Baoshan Iron & Steel Co., the largest publicly traded steelmaker in China, announced that it has inked agreements to establish a joint venture for the production of steel plates with Saudi Aramco and Public Investment Fund (PIF).
According to Baosteel, it will own a 50% stake in the joint venture while Saudi Aramco and PIF would each own a 25% stake.
The project is still awaiting regulatory approval, but the joint venture will construct a steelmaking manufacturing facility in Saudi Arabia with a planned annual capacity of 2.5 million tonnes of direct reduction iron and 1.5 million tonnes of steel plate.
By the end of 2026, Baosteel hopes to have the manufacturing base up and running.
A direct reduction iron furnace and an electric arc furnace powered by natural gas will be part of the project, which would lower carbon dioxide emissions from the steelmaking process by more than 60%, according to the statement.
The largest steel producer in the world, China Baowu Steel Group, owns Baostseel.
State-owned iron and steel firm China Baowu Steel Group Corp., Ltd., also known as Baowu, has its headquarters in Pudong, Shanghai, China's Baosteel Tower. In 2016, Baosteel Group acquired Wuhan Iron and Steel Corporation, a smaller state-owned rival, to become the corporation. It is the biggest steel manufacturer in the world.