On May 1, Aramco, one of Saudi Arabia's major integrated energy and chemicals companies, China’s Baowu Steel Group Corp., Ltd. (Baosteel), and Saudi Arabia’s Public Investment Fund (PIF) have signed an agreement to establish the first integrated steel plate manufacturing complex in the Kingdom of Saudi Arabia. Moreover, it is the first plate production to be established within the Gulf Cooperation Council (GCC) region.
The planned complex is expected to be established in Ras Al-Khair Industrial City, one of four new special economic zones recently launched by Crown Prince Mohammed bin Salman, and will be the first of its kind in Saudi Arabia and the GCC area.
The facility will be equipped with a direct reduced iron (DRI) furnace powered by natural gas and an electric arc furnace to reduce CO2 emissions from the steel-making process. It is anticipated to have a steel plate production capacity of up to 1.5 million mt per year.
Furthermore, the goal of this agreement is to improve the domestic manufacturing sector by localizing heavy steel plate production, sharing knowledge, and eventually providing export potential to the GCC and broader MENA region.
“The Kingdom’s first steel plate production facility is expected to enhance Saudi Arabia’s steel industry ecosystem and improve supply chain localization,” said Amin H. Nasser, Aramco president and CEO.
Furthermore, it is also planned to generate new employment and drastically reduce dependency on imported steel plate by supplying clients in various important industrial sectors such as pipelines, shipbuilding, rig manufacturing, offshore platform fabrication, and tank and pressure vessel manufacturing.
