CHINA’S biggest listed steelmaker, Baoshan Iron and Steel Co (Baosteel), said on Thursday (Jul 25) that it will more than double its investment in a steel plate joint venture in Saudi Arabia to US$1 billion from around US$437.5 million previously.
Baosteel, a subsidiary of the world’s largest steelmaker China Baowu Steel Group, signed agreements in May with Saudi Aramco and the Saudi Public Investment Fund (PIF) to build a steel plate manufacturing joint venture.
Baosteel holds 50 per cent in the joint venture, while Saudi Aramco and PIF will take 25 per cent stake each.
Baosteel will also reduce the financing collateral principal for the joint venture to nearly US$1.1 billion from US$1.3 billion, it said in a separate document filed to the Shanghai Stock Exchange.
The joint venture boasts a designed annual capacity of 2.5 million tonnes of direct reduced iron and 1.5 million tonnes of steel plate. REUTERS
