Baosteel Doubles Investment in Saudi Venture to $1 Billion

Baoshan Iron & Steel Co.، China’s biggest steel producer، said it had more than doubled its investment in a steel plate venture in Saudi Arabia to $1 billion.

The company، known as Baosteel، will have a 50% stake، it said in a statement to the Shanghai Stock Exchange. Saudi Arabian Oil Co. and Saudi Arabia’s Public Investment Fund also more than doubled their investments to $500 million، for a 25% stake each، according to the statement.

The proportion the companies own is the same as the original plan released last year.

The venture، located in Ras al-Khair Industrial City and with an annual steel plate capacity of 1.5 million tons، will supply oil، gas، shipbuilding and construction industries in the Middle East and North Africa، Baosteel said in the statement.

Saudi Arabia has been seeking to attract overseas investment in areas from solar power to metals، while China is seeking closer economic ties with Persian Gulf countries. The move also came as China’s steel mills look to increase exports as domestic demand falters.