China’s Baosteel signs deal with Saudi Aramco, PIF to build ‘green steel’ plant as part of Belt and Road Initiative
- Baosteel will invest US$437.5 million for a 50 per cent stake in the proposed joint venture with Saudi Aramco and Public Investment Fund
- The partners aim to make project the world’s ‘most competitive low-carbon emission thick steel plates’ plant
The flagship unit of China Baowu Group, the world’s top steelmaker, has agreed to plough US$437.5 million for a 50 per cent stake in the proposed joint venture, Baosteel said in a filing to the Shanghai stock exchange on Thursday.
An agreement was signed in Saudi Arabia on May 1. Baosteel has agreed to provide up to US$1.33 billion of financing guarantee to the joint venture, it said in a separate filing.
The investors aspire for the project to become the world’s “most competitive low-carbon emission thick steel plates” plant, targeting Middle East and North Africa customers in the oil and gas, shipbuilding, offshore engineering and construction sectors.
“This project is a perfect amalgamation of Saudi Arabia’s Vision 2030 and [China’s] Belt and Road Initiative,” Shanghai-based Baosteel said, adding it forms a key part of its international expansion and sustainable development strategy.
