Baosteel Lifts Saudi Steel Plate Investment to $1bn

Chinese steelmaker Baosteel has increased its planned investment in a joint steel plate project in Saudi Arabia to about USD 1 billion (roughly SAR 3.75 billion). The integrated complex is being built in Ras Al-Khair Industrial City, a Special Economic Zone in the Eastern Province, and is targeting first production in 2026.

Under the ownership structure, Baosteel will hold a 50% stake, while Aramco and the Public Investment Fund (PIF) will each hold 25%. Aramco and PIF have each committed around SAR 820.31 million (about USD 218 million) toward the capital injection for their shares. The joint venture company was formally registered in Saudi Arabia in November 2024, following a shareholders' agreement initially signed in May 2023.

The complex is designed to produce around 2.5 million tonnes of direct reduced iron (DRI) and 1.5 million tonnes of flat steel products It uses a DRI furnace and electric arc furnace (EAF) setup aimed at lower-carbon "green steel" plate for energy, shipbuilding, offshore engineering, and construction markets in Saudi Arabia and the wider MENA region. The overall integrated project has been described as costing around USD 4 billion, marking Baosteel's first overseas integrated steel plate base.

Site preparation and piling at Ras Al-Khair are reported complete, with procurement ongoing. Baosteel's listed entity has arranged a financing guarantee of up to about USD 1.07–1.1 billion, with potential lenders including the Saudi Industrial Development Fund and Export-Import Bank of China.

The project matters to the local community because it adds high-value manufacturing capacity and jobs in the Eastern Province, supports the Kingdom's push into cleaner industrial production, and strengthens Saudi Arabia's domestic supply of steel for construction and energy sectors.

---

Stay updated with the latest news, events, sports updates, business insights, real estate and lifestyle stories on Saudi Living — the leading online platform for residents, expats, and visitors in Saudi Arabia.

Follow Saudi Living for daily updates:

• Instagram - @saudiliving
• X - @saudiliving
• Facebook - @saudiliving
• YouTube - @saudiliving