International Steel Mills
Aramco, Baosteel Ink Deal to Build Saudi Plate Plant
May 2, 2023
Saudi Arabian energy company Aramco, the Public Investment Fund (PIF), and China’s Baoshan Iron & Steel (Baosteel) signed an agreement on May 1 to build a steel plate manufacturing facility in Saudi Arabia.
The operation is expected to have a plate production capacity of up to 1.5 million tons per year, Aramco said. It will be equipped with a natural gas-based, direct-reduced iron (DRI) furnace and an electric-arc furnace, aiming to reduce CO2 emissions by up to 60% vs. a traditional blast furnace, the company added.
Aramco noted that it would be the first facility of its kind in Saudi Arabia and the Gulf Cooperation Council (GCC), which also includes Kuwait, the United Arab Emirates, Qatar, Bahrain, and Oman.
“The Kingdom’s first steel plate production facility is expected to enhance Saudi Arabia’s steel industry ecosystem and improve supply chain localization,” Amin H. Nasser, Aramco president and CEO, said in a statement.
Aramco said the agreement is subject to customary regulatory approvals and closing conditions.
PIF is the sovereign wealth fund of Saudi Arabia.
By Ethan Bernard, ethan@steelmarketupdate.com
Latest in International Steel Mills
Ternium’s Vedoya named AIST’s Steelmaker of the Year
Maximo Vedoya was awarded in recognition of Ternium’s expansion project in Pesquería, Mexico, and Ternium’s efforts to decarbonize steelmaking.
CRU: Baosteel hints at output cuts in China
Baosteel exec comments on market rumors of 50 million tons of output being cut this year, less than 0.5% of the 1 billion tons-plus China has produced annually in recent years.
POSCO mulls teaming up with Hyundai on Louisiana mill
South Korea’s POSCO is eyeing linking up with Hyundai Steel in the project to build a steel plant in Louisiana, according to media reports.
Global steel production edges lower in February
February’s global raw steel output is tied with last December's for the fourth-lowest monthly production rate recorded over the past two years.
Japanese PM cites ‘unjust political interference’ in Nippon/USS deal: Report
Japan’s Prime Minister Shigeru Ishiba said on Monday that former President Joe Biden’s decision to block Nippon Steel’s buy of U.S. Steel was “unjust political interference,” according to a report in Reuters. This comes after another Reuters report on Friday saying that President Trump would not object to Nippon taking a minority stake in the […]