According to the EU Merger Regulation, the European Commission approved the establishment of a joint venture between Baosteel, Saudi Arabian National Oil Company (Saudi Aramco) and the Saudi Public Investment Fund (PIF). The joint venture will produce and supply direct reduced iron and thick steel plates to third parties and Saudi Aramco, PIF and its affiliates under long-term supply agreements.

In May this year, Baosteel officially signed a contract with Saudi Arabian National Oil Company and Saudi Public Investment Fund to jointly build the world's first green and low-carbon full-process thick plate factory in Saudi Arabia.

According to the agreement, the three parties will jointly invest in a joint venture company, with Baosteel holding 50%, Saudi Aramco and PIF holding 25% each. After the establishment of the joint venture, it will build a full-process steel manufacturing base with an annual design capacity of 2.5 million tons of direct reduced iron and 1.5 million tons of thick plate, positioned to produce high-end thick plate products, mainly serving oil and gas, shipbuilding, offshore industry, storage tank and pressure vessel manufacturing and other strategic industrial fields in the Middle East and North Africa.