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
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 […]
Opening briefs filed in Nippon/USS lawsuit vs. US government
Together, Nippon Steel, Nippon Steel North America, and U.S. Steel announced the filing of their opening brief in their litigation to invalidate the government’s decision to block their announced merger. The brief lays out “how President Biden made a predetermined decision for political reasons, not national security, causing CFIUS to engage in a sham review […]
Hyundai mulls building $6B sheet steel mill in southern US
Hyundai Motor Group is reportedly considering building a sheet steel mill just south of Baton Rouge, La.
CRU: Nippon Steel claims breakthrough in hydrogen use
Japan’s Nippon Steel says it has achieved the world’s highest reduction in CO2 emissions to date by using heated hydrogen instead of coal to reduce iron ore in a blast furnace.
Nippon buying stake in Canadian iron ore project
Nippon Steel and a Japanese trading company have entered an agreement to buy a 49% interest in a Champion Iron ore project in Canada.