Beijing: China’s largest steel producer Baosteel Group said Wednesday, 10 October, its first overseas steel plant in Brazil will involve an initial investment of $3 billion.
The Shanghai company holds 60% of the plant, which is located in the state of Espirito Santo in the south, with Brazil’s Companhia Vale do Rio Doc taking the remainder, a Baosteel executive who declined to be named told AFP.
Construction on the plant is planned to start in the first half of 2009, said a statement on Baosteel’s website.
The mill is expected to start operation by the end of 2011 with an initial production capacity of five million tonnes of steel slab each year.
State-controlled Baosteel, currently the world’s fifth largest producer, is planning to nearly quadruple capacity to 80 million tonnes by 2012 and become the world’s second biggest after Arcelor Mittal.