Brazil’s CVRD, China’s Baosteel to build steel plant

Brazil’s CVRD, China’s Baosteel to build steel plant
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First Published: Fri, Aug 24 2007. 12 16 PM IST
Updated: Fri, Aug 24 2007. 12 16 PM IST
PTI
Beijing: China’s steel giant, Boasteel has inked a deal with Brazil’s mining giant Companhia Vale do Rio Doce (CVRD) to build a major steel plant in Brazil with an initial production capacity of five million tonnes a year.
The plant, located in the industrial district of Anchieta in the southern state of Espirito Santo, is expected to generate 3,000 direct jobs.
CVRD said that at the start of the plant’s construction it will hold a participation of 20%, while Baosteel will have up to 80%.
The agreement with Baosteel is consistent with CVRD’s strategy of attracting new investment in the steel industry in Brazil and will increase iron ore consumption and create job opportunities in Brazil, CVRD said.
The steel project in Espirito Santo will replace another one, initially expected to take place in Maranhao state, in the northeast region, Xinhua news agency reported.
CVRD’s CEO Roger Agnelli recently told local press that the previous project was cancelled because the company did not reach an agreement with Maranhao’s government on the plant’s location.
CVRD is currently participating in the construction of a steel plant in Rio de Janeiro, in association with Germany’s ThyssenKrupp Steel AG.
Additionally, it has planned to implement another steel project in Ceara state, in partnership with South Korea’s Dongkuk Steel and Italy’s Danieli.
In December 2006, CVRD favoured Baosteel in the choice of the reference price for iron ore trade in 2007. This is the first time that the Brazilian mining company has favoured a Chinese company in the choice of the price, the report said.
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First Published: Fri, Aug 24 2007. 12 16 PM IST
More Topics: China | Steel | Baosteel | Brazil | CVRD |