(Yicai Global) Sept. 9 -- Baoshan Iron and Steel’s shares surged after the Chinese state-owned metals giant, known as Baosteel, said it will build a world-class integrated steel plate factory in Saudi Arabia with the world’s top crude oil producer, Saudi Aramco.

Baosteel [SHA:600019] gained 8.5 percent today to close at CNY11.42 (USD1.77), boosting its market value to CNY241.4 billion (USD37.4 billion).

Baosteel and Saudi Aramco will form a committee to carry out feasibility studies on the project’s business plan, implementation and joint venture setup, the Shanghai-based company said yesterday. It did not disclose any financial or plant capacity details.

The memorandum of understanding signed on Sept. 7 was a key moment for the Chinese steelmaker and forms part of the firm’s efforts to promote its internationalization strategy, Baosteel said, noting that building a plant overseas is in line with the firm’s long-term plans.

Saudi Aramco, a strategic customer of Baosteel, is an important supplier of crude oil to China. It also announced 22 other cooperation deals and JV plans yesterday, with the aim of promoting the sustainable development of Saudi Arabia’s industry.

Editor: Futura Costaglione