BEIJING (Reuters) – China’s biggest listed steelmaker, Baoshan Iron and Steel Co (Baosteel), said on Thursday that it will more than double its investment in a steel plate joint venture in Saudi Arabia to $1 billion from around $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% in the joint venture, while Saudi Aramco and PIF will take 25% stake each.
Baosteel will also reduce the financing collateral principal for the joint venture to nearly $1.1 billion from $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 metric tons of direct reduced iron and 1.5 million tons of steel plate.
(Reporting by Amy Lv, Ethan Wang and Ryan Woo; Editing by Kevin Liffey)
