Baoshan Iron and Steel Co Ltd (Baosteel), Saudi Aramco, and Public Investment Fund (PIF) have reached an agreement to build a full-process thick plate plant in Saudi Arabia, which will become the world's first green and low-carbon steel plant of its kind. The joint venture will be owned 50% by Baosteel, with Saudi Aramco and PIF each holding 25% stakes.

The plant will have a designed capacity of 2.5 million tons of direct reduced iron and 1.5 million tons of thick plate annually, and it is expected to become operational by the end of 2026. This will also be Baosteel's first full-process production base overseas, subject to regulatory approvals.

The project is part of Baosteel's efforts to develop high-quality infrastructure along the Belt and Road initiative. Alongside Saudi Aramco and PIF, the three partners aim to create a role model project for economic collaboration between China and Saudi Arabia.

The future production base will be equipped with a direct reduced iron furnace and an electric arc furnace fueled by natural gas, which is expected to reduce carbon dioxide emissions by more than 60% compared to conventional blast-furnace-based steelmaking processes. It will become a benchmark project in green and low-carbon development.