Brazil’s CSN plans to invest 1 billion euros in Portugal

12 February 2007

Lisbon, Portugal, 12 Feb – Brazilian steelmaker Companhia Siderúrgica Nacional (CSN) is negotiating investments of 1 billion euros in Portugal, in two projects for its Lusosider subsidiary, the chairman of the company, Benjamin Steinbruch said in Lisbon Saturday.

Speaking to Portuguese news agency Lusa, Steinbruch said that one of the projects being looked at was the investment of 200 million euros to boost production capacity at Lusosider from the current 350,000 tons to 1 million tons of steel.

“The studies have been carried out, the project is well on its way and could be finished within two or three months,” said Steinbruch.

The second project is planned investment of 800 million euros to be spent on a hot rolling mill for 3 million tons, in order to supply the Portuguese and Spanish markets as well as the South of France.

“We plan to be in Europe, in these markets, and as we are already in Portugal, with Lusosider, it is totally logical to start from here,” he explained.

This investment follows CSN losing out to Tata Steel on buying Corus. Tata Steel offered US$11.3 billion for the company on January 31 this year.

Lusorider is totally owned by CSN, which in May of last year bought 50 percent of the company it did not own from Corus Group for 25 million euros.

The two multinational steelmakers had been partners in Lusosider since 2003 when CSN bought Arcelor’s stake in the Portuguese company.

The steelmaker, located in Seixal near Lisbon, in 2006 launched a new production line, in a 6 million euro investment that made it possible to double its production capacity. (macauhub)