The expanded investment will support the establishment of an integrated steel plate manufacturing complex in Ras al-Khair Industrial City, a newly designated Special Economic Zone. This facility, the first of its kind in Saudi Arabia and the GCC region, is a collaboration between Baosteel, Saudi Aramco, and the Public Investment Fund (PIF). The complex is set to produce up to 1.5 million tons of steel plates annually and is expected to significantly boost the local manufacturing sector.
Amin H. Nasser, President and CEO of Saudi Aramco, emphasized that this venture is part of the company’s Namaat program, which aims to develop strategic industrial investments and enhance supply chain localization. The steel plate facility will not only support Saudi Arabia's growing industrial sector but also contribute to job creation and economic growth.
Baosteel's advanced steel production technology will play a crucial role in this venture. The facility will include a natural gas-based direct reduced iron (DRI) furnace and an electric arc furnace, designed to reduce CO2 emissions by up to 60% compared to traditional blast furnaces. Additionally, the DRI plant is compatible with hydrogen, potentially reducing CO2 emissions by up to 90% in the future.
Yazeed A. Al-Humied, Deputy Governor and Head of MENA Investments at PIF, highlighted the strategic importance of this project in diversifying Saudi Arabia's economy. By fostering local manufacturing capabilities and reducing reliance on imported steel, the venture aligns with the Kingdom’s Vision 2030 objectives.
Zou Jixin, Chairman of Baosteel, reiterated the company’s commitment to exploring lower-carbon pathways in the steel industry. This project, he noted, marks a significant step in Baosteel’s international expansion strategy and its efforts to contribute to local economic prosperity in Saudi Arabia.
The project is also supported by the Kingdom’s Shareek program, which aims to foster greater cooperation between the public and private sectors, creating incentives for domestic investment and enhancing economic development. The complex will serve several strategic industrial sectors, including pipelines, shipbuilding, rig manufacturing, and offshore platform fabrication, as well as the construction, renewables, and marine sectors.
This investment reflects Baosteel's confidence in the Saudi market and its strategic vision to support the development of a robust steel industry in the region. By leveraging the combined strengths of Aramco’s industrial ecosystem, Baosteel’s steel manufacturing expertise, and PIF’s financial and investment capabilities, the project is poised to become a cornerstone of Saudi Arabia's industrial landscape.
The integrated steel plate manufacturing complex is expected to create numerous job opportunities, both directly and indirectly, contributing to the Kingdom’s socio-economic development. It will also enhance the competitiveness of Saudi Arabia’s steel industry on a global scale, positioning the country as a key player in the international steel market.