Tel :
Tel :
Saudi Arabia is accelerating the development of its domestic steel plate industry, with localization projects in cooperation with Chinese steel giant Baosteel continuing to be implemented. X42 steel While Baosteel remains firmly committed to the projects, the company is seeking to optimize its investment strategy to reduce overall costs.
Baosteel is advancing the construction of a $2.5 billion integrated steel plate manufacturing base in Saudi Arabia, with a designed annual production capacity of 2.5 million tons. The project, undertaken in partnership with Saudi Aramco and the Public Investment Fund (PIF), is Baosteel's first overseas steel base project. X42 steel, However, Baosteel plans to reduce the total investment by adjusting the project plan. The company stated that while fixed asset investment costs are high in Saudi Arabia, operating costs are relatively low. It is understood that Baosteel is actively collaborating with original equipment manufacturers (OEMs) to promote localized equipment production, reduce manufacturing costs, and improve distribution efficiency within Saudi Arabia.
The integrated base will adopt a production route based on DRI-EAF (Direct Reduced Iron + Electric Arc Furnace), meeting high environmental standards and reserving the possibility of using hydrogen energy in the future.X42 steel, The project is divided into eight main phases. The first three phases focus on preliminary engineering, site preparation, and infrastructure construction. The next phase involves the construction of DRI, the steel plant, and the heavy plate rolling mill. The last two phases cover supporting facilities, the port, and the material handling system.
The integrated steel plate manufacturing base project in Ras al-Hail was first announced in May 2023, and the joint venture was officially registered in Saudi Arabia in November 2024, marking an important milestone in the localization process of the project under the "Vision 2030" strategy.
