Baosteel, China's largest steelmaker, announced that it has more than doubled its investment in a steel plate joint venture in Saudi Arabia from $437.5 million to $1 billion.
Baosteel, a subsidiary of Baowu Steel Group, signed an agreement with Saudi Aramco and the Saudi Public Investment Fund (PIF) in May this year to establish a joint venture to produce steel plate. The Chinese side will hold a 50% stake, while Saudi Aramco and PIF will each hold 25%. The shares will remain the same as the plan announced last year.
The Chinese company will also reduce its commitment to finance the joint venture from $1.3 billion to about $1.1 billion, according to a separate document filed with the Shanghai Stock Exchange.
The plant has an annual capacity of 2.5 million tonnes of direct reduced iron and 1.5 million tonnes of flat products. Located in the industrial city of Ras al-Khair, the plant aims to supply products to the oil sector, shipbuilding and construction industries in the Middle East and North Africa.
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