Chinese company CBStell plans to invest US$3.5 billion in building a steel plant in Bacabeira in the Brazilian state of Maranhão, with capacity to produce 3 million tonnes of steel per year, announced the Brazilian government.
In a second phase CBStell will invest another US$4.5 billion to increase production capacity to 10 million tonnes of steel per year.
Funding will come from China Brazil Xinnenghuan International Investment Co Ltd.
Brazilian mining company Vale announced, meanwhile, it had signed a memorandum of understanding (MoU) with CBStell with a view to a partnership allowing Vale to receive the new steel plant’s iron ore.
The agreement was signed in Shanghai at a seminar and meeting of businesspeople organised by the Brazilian government aimed at attracting Chinese investors to Brazil.
The project, which includes construction of a port, will create 5,000 jobs in north-eastern Brazil. (macauhub/BR/CN)