Vale do Rio Doce and Baotseel Group to build steel plant in Brazil

24 August 2007

Rio de Janeiro, Brazil, 24 Aug – Brazilian company Companhia Vale do Rio Doce (CVRD) said Thursday it had signed a deal with China’s Baosteel Group Corp to build a steel plant in Brazil with an initial capacity of 5 million tons per year.

The factory will be located in the district of Anchieta, in the Brazilian state of Espírito Santo, and is expected to create 3,000 direct jobs.

CVRD also said that when construction begins its would have a 20 percent stake in the project and Baosteel would own the remaining 80 percent.

This Espírito Santo project replaces the one that was initially outlined for the state of Maranhão as, according to the chairman of CVRD Roger Agnelli, speaking at a press conference, “we were unable to reach agreement with the state authorities on the location of the factory.”

CVRD is currently involved in the construction of a steelworks in the State of Rio de Janeiro, in association withThyssenKrupp Steel AG of Germany and plans to build another in the state of Ceará, in partnership with South Korea’s Dongkuk Steel da Coreia do Sul and Italy’s Danieli. (macauhub)