Saudi Aramco and Baoshan Iron and Steel Company (Baosteel), the largest listed steel producer in China, signed an agreement to build a steel plate factory in the Kingdom.

Baosteel said in a statement that it had signed an initial agreement with Aramco, the world's largest crude producer, to study the construction of a steel plate factory in Saudi Arabia.

In a disclosure to the Shanghai Stock Exchange, she added that the two companies intend to conduct a feasibility study on building a factory to produce heavy steel plates used in the construction sector.

Baosteel indicated that the planned cooperation is "in line with Vision 2030 in the Kingdom and the Belt and Road Initiative of the Chinese government," noting that Saudi Vision 2030 is a plan aimed at diversifying the sources of the Kingdom's economy that depends on oil, while the Belt and Road Initiative is a huge program for trade and infrastructure launched by the Chinese President. Xi Jinping.

The company explained that global activities and building steel plants abroad have always been part of Baosteel's long-term strategy.