Brazil: Mission from Espírito Santo state in China to meet with Baosteel

15 October 2008

Vitória, Brazil, 15 Oct – A mission from the state government of Espírito Santo in Brazil is travelling to China for meetings with the Boasteel steel making company, which plans to invest US$4.5 billion in building a steel foundry in partnership with Brazil’s Vale do Rio Doce (CVRD), in the Brazilian state.

A statement from the state government said that this was a “technical visit that aims to make it easier to publish information about Boasteel’s investments (…).”

The factory will also be located in the Anchieta district and create 3,000 direct jobs when it goes into operation.

The mission, which also included representatives of the Federation of Industries of Espírito Santo (Findes) plans to visit the Baosteel group’s foundry in Shanghai.

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 signed between 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)