Saudi Aramco has signed a memorandum of understanding (MoU) with three Japanese firms to study opportunities to collaborate on steel production in the kingdom.

Aramco signed the MoU with Nippon Steel, Sumitomo Metal Corporation (NSSMC), and Sumitomo Corporation to conduct a feasibility study for an integrated steel mill to produce steel plates in Ras al-Khair.

Aramco says the project is aligned to Saudi Vision 2030, and will help increase the local content in the state oil giant’s supply chain.

Steel plate production goes into the manufacturing of pipes, pressure vessels, marine vessels, offshore platforms, and infrastructure, among other applications and utilities.

NSSMC is headquartered in Japan and was the world’s second largest steel producer by volume in 2017. It is involved in the production of steel and finished steel products used in all industries.

Japanese industrial conglomerate and investment group Sumitomo Corporation has a track record of partnering with Saudi Aramco on projects, including the Petro Rabigh downstream facility and the installation of communication systems at Aramco’s Manifa oil field.

The Sumitomo Mitsui Banking Corporation, a unit of Sumitomo Corporation, is also said to be advising Aramco, along with the US’ Citigroup and the UK’s Standard Chartered, on raising credit from sovereign bodies and banks in the run-up to the Saudi energy major’s planned stock listing.