Suppliers of future Rio de Janeiro steel-making factory to buy 90 pct of machinery equipment from China

24 August 2006

Sao Paulo, Brazil, 24 Aug – The companies selected by Companhia Siderúrgica do Atlântico (CSA) to supply equipment to the future steel-making factory of Santa Cruz, in Rio de Janeiro are expected to import 80 to 90 percent of the machinery from China, reported Brazilian newspaper Valor.

The future steel making factory is estimated to cost around US$ 2.4 billion, to come from Germany’s ThyssenKrupp, controlled by CSA.

CSA has already chosen some of the companies that will supply certain packages, such as its Belgian subsidiary Paul Wurth, which is going to manufacture two furnaces for US$ 360 million.

Paul Wurth is expected to have at least 80 percent of the machinery produced in Chinese factories, where the company will have to send designs of the machines and equipment necessary for the project.

Germany’s Siemens Vöest, formerly Vöest Alpine, which is going to supply machinery for the continuous steel making and casting process, is expected to acquire over 90 percent of parts and equipment from Chinese industries.

According to Valor, “practically all of the companies that have taken part in the running to be a CSA supplier had to use the Chinese market to adjust the price of its proposals”.

The total value of CSA’s project is US$ 3.6 billion and includes the installation of a coke oven plant, a thermal electrical station and a port terminal, in addition to the five million ton steel plate factory worth US$ 2.4 million. (macauhub)