(MENAFN) Saudi Arabia's Public Investment Fund (PIF), Saudi Arabian Oil Co., and China-based Baoshan Iron & Steel Co. have signed a shareholders' agreement to establish an integrated steel plate manufacturing complex in the Kingdom. Mohammed Aldawood, head of industrials and mining sector for Middle East and North Africa investments at PIF, highlighted the significance of this project, which will be the first of its kind in the Gulf Cooperation Council (GCC) region. The establishment of this complex aims to advance the regional steel industry ecosystem and bolster the domestic manufacturing sector.
The project's primary objective is to localize the production of heavy steel plates, thereby reducing the reliance on imported steel and promoting the growth of the domestic steel industry. Additionally, the project seeks to transfer knowledge, create export opportunities, and cater to the needs of various strategic industrial sectors such as pipelines, shipbuilding, rig manufacturing, offshore platform fabrication, and tank and pressure vessel manufacturing. By enhancing the domestic manufacturing capabilities in these sectors, the complex will contribute to the diversification of the local economy.
The proposed joint venture complex is expected to be located in Ras Al-Khair Industrial City, a prominent industrial hub in Saudi Arabia. With a steel plate production capacity of up to 1.5 million tons per year, the facility will significantly enhance the Kingdom's steel manufacturing capabilities. The investment decision reflects PIF's strategic approach of unlocking the potential of promising sectors and strategically important industries that can drive economic diversification.
Aldawood emphasized the importance of this investment as it aligns with PIF's broader strategy and contributes to the growth and development of key industries within the Kingdom. By reducing dependency on imported steel and establishing local manufacturing capabilities, Saudi Arabia aims to strengthen its industrial sector, create job opportunities, and expand its export potential. This initiative showcases PIF's commitment to fostering economic diversification and promoting sustainable growth in line with Saudi Arabia's Vision 2030.
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