Beijing, China, 11 Oct – Boasteel, China’s largest steel producer, plans to invest US$3.3 billion in Brazil in partnership with Brazilian mining giant Companhia do Vale do Rio Doce (CVRD), an official from the Chinese company said Wednesday in Beijing.
“The Brazilian project requires an investment of around US$5.5 billion and we expect to invest US$3.3 billion, as we own 60 percent of the capital,” an unnamed representative of Baosteel’s department of international business told Portuguese news agency Lusa.
On October 3, in Brazil, CVRD, the second-largest iron ore producer in the world and Baosteel made the partnership official to create a steel works in the state of Espírito Santo, in the south of Brazil.
Construction of the unit – Companhia Siderúrgica Vitória – is expected to be launched in the first half of 2009 and will begin by producing 5 million steel plates for export by 2012, according to the deal signe dbetween Baosteel and CVRD.
According to the chairman of CVRD, Roger Agnelli, the Siderúrgica Vitória project will require investment of US$4.5 billion for construction of the factory, US$500 million for infrastructure development in the port of Ubu, also in Espírito Santo, and US$400 million to develop the railroad serving the port.
Chinese state-owned company Baosteel is currently the fifth largest producer of steel in the world, but aims to increase its production four-fold to 80 million tons per year by 2012 and make it the second-largest company in the sector, after Arcelor Mittal.
In 2006 CVRD became China’s biggest supplier of iron ore, with exports of 20.4 million tons. (macauhub)