China expected to make significant investments in Brazil in 2010

29 March 2010

Sao Paulo, Brazil, 29 March – China is this year expected to make significant investments in Brazil, particularly in the oil, mining and steel making sectors, which are strategic for keeping growth rates high, according to Brazilian news agency Agência Estado.

The agency added that the visit to Brazil by President Hu Jintao, on 15 and 16 April, will be a high point, as a contract is expected to be signed by LLX, owned by Eike Batista, and state Chinese company Wisco (Wuhan Iron and Steel Corp) for construction of a steel plant in Porto do Açu.

This investment, if it is made, will be the biggest ever made by China in teh steel making industry outside the country, as well as being China’s biggest ever investment in Brazil.

Wisco will provide 70 percent of the US$4.7 billion needed to carry out the project.

Petrobras and Sinopec are negotiating a partnership that could lead to joint development of oil in Brazil and are working towards teh project being announced during President Hu’s visit.

The state Chinese company has a stake of 20 percent in two oil wells owned by Petrobras in Pará state and, as well as this, the Brazilian company is negotiating a new loan of US$10 billion with the China Development Bank, which may be announced on the President’s visit.

“The oil sector will lead to the appearance of a new generation of Chinese investment projects in Brazil,” Brazilian ambassador to China, Clodoaldo Hugueney told newspaper Estado de Sao Paulo. (macauhub)