8 September afternoon, baosteel, according to the announcement on September 7, the company with Saudi Arabia's state oil company (hereinafter referred to as the "Saudi aramco") signed the memorandum of understanding, negotiation plans to work in Saudi Arabia, to build a world class the whole process of thick plate plant, and the project feasibility study and the follow-up will jointly agree to carry out the work content. It is reported that the two sides signed the agreement in the form of "cloud signing".
The relevant person in charge of Baosteel said in an interview with the reporter that this is a new progress in the implementation of Baosteel's internationalization strategy in recent years, and also reflects the promotion of carbon neutrality with overseas users. It is an important measure for the company to actively participate in the construction of "The Belt and Road". Details such as the size of the project and the amount involved could not be disclosed at present.
actively participate in the Belt and Road Initiative
According to the announcement, Saudi Aramco and Baosteel have held discussions to evaluate the feasibility of establishing a world-class integrated steel plate manufacturing company in Saudi Arabia, which is in line with Saudi Arabia's Vision 2030 and The Chinese government's Belt and Road Initiative. Both parties agree to set up a steering committee in accordance with the MOU and jointly conduct research on the business plan, feasibility study and joint venture company formation of the project.
It is reported that the project mainly includes the construction of a full-process thick plate factory and related supporting facilities, which is positioned to produce high-end thick plate products. Saudi Aramco, the leading Saudi partner in the project, is one of the world's largest oil producers and refiners, a key supplier of crude oil to China and a strategic customer of Baosteel. Through the construction and operation of cooperative projects, the two sides will establish capital ties, strengthen mutual trust and further deepen strategic cooperation.
At the signing ceremony, Saudi Aramco announced its latest Expanded Industrial Investment Program (AramcoNama'at), which focuses on capacity building in four key areas of sustainability, technology, industrial and energy services, and advanced materials to drive economic expansion and diversification. As an important part of the investment plan, the thick plate plant project cooperated with Baosteel aims to provide strong support in design and construction, production operation, technology research and development with the help of baosteel's deep strength and rich experience as a leader in the steel industry.
Practice the "dual carbon" strategy
Baosteel also said that the signing is also baosteel to promote the implementation of the international strategy of the key action. To speed up the construction of overseas steel mills and realize "going global" has always been baosteel's higher self-requirements of focusing on the long-term strategic layout, practicing the responsibility of central enterprises and exploring the brand going overseas. Entering the new era of "double carbon", Baosteel has repeatedly proposed to deeply understand the important strategic significance of "going out" under the new situation, and to take the construction of overseas steel mills as a historical responsibility and an inevitable choice to expand the space for survival and development.
As baosteel to strategic partner practice "double carbon" strategy actively attempt to project plan using DRI + EAF process path, compared with the traditional process of blast furnace + converter path, carbon footprint will be greatly reduced, baosteel is exploring new technology of low carbon metallurgical path important practice, under the background of the "double carbon" will be more international iron and steel cooperation projects to carry out a demonstration.
Reporters also noted that recently Baosteel shares in the carbon neutralization work frequently. On September 6, the company successfully issued Shanghai's first sustainable development-linked bond (medium-term note) in the interbank market. In addition, at this year's semi-annual performance presentation, Baosteel Planned the exchange of topics such as "New Journey of New Steel and New Baosteel", "Be the leader of Green manufacturing and green manufacturing in China's Steel industry" and "New opportunities of double carbon new track silicon Steel", expressing its emphasis on green and low-carbon transformation.
On baosteel's cooperation with Saudi Aramco, Shen Meng, executive director of Chanson Capital, told reporters that Baosteel needs new space for business growth in the context of weakening domestic infrastructure investment and rising costs in the steel industry amid soaring commodity prices. In addition, the steel industry is a large user of carbon emissions. As the world's largest crude steel production capacity, Baosteel's accelerated "carbon neutrality" is conducive to the overall carbon reduction of the industry.
