Brazil: Vale do Rio Doce and South Korea’s Dongkuk Steel Mill to build steelworks in Ceará state

21 November 2007

Brasilia, Brazil, 21 Nov – Brazilian mining giant Companhia do Vale do Rio Doce (CVRD) and South Korea’s Dongkuk Steel Mill Tuesday signed a deal in Brasilia worth and estimated US$2 billion.

According to a statement published by CVRD, this project includes construction of a factory with initial production capacity of 2.5 million tons of iron sheets per year, which, due to its modular construction could produce up to 5 million tons per year.

The future factory would be the third large steel making project organized by CVRD in a three-year period, added to CSA/ThyssenKrupp (RJ) and CSV/Baosteel (ES), increasing Brazilian production by 12.5 million tons, and with investments of over US$10 billion.

During the ceremony to sign the deal, during a visit by the chairman of the Korean group, Saejoo Chang, to Brazil, the chairman of CVRD Roger Agnelli, said that the company aimed to “bring more factories to Brazil.”

CVRD, which was privatized in 1997, is the world’s largest iron ore exporter and Dongkuk Steel is one of South Korea’s main steel manufacturers. (macauhub)