Brazil's mining giant Companhia Vale do Rio Doce (CVRD)
announced on Thursday it has signed a memorandum of understanding
with China's Baosteel Group Corporation, to build a steel plant
with an initial production capacity of five million tons per
year.
The plant will be located in the industrial district of
Anchieta, in the southern state of Espirito Santo, is expected to
generate 3,000 direct jobs when it starts operating.
CVRD said that at the start of the plant's construction it will
hold a participation of 20 percent, while Baosteel will have up
to80 percent.
The agreement with Baosteel is consistent with CVRD's strategy
of attracting new investment in the steel industry in Brazil and
will increase iron ore consumption and create job opportunities in
Brazil, CVRD said.
The steel project in Espirito Santo will replace another one,
initially expected to take place in Maranhao state, in the
northeast region.
CVRD's CEO Roger Agnelli recently told local press that the
previous project was cancelled because the company did not reach an
agreement with Maranhao's government on the plant's location.
CVRD is currently participating in the construction of a steel
plant in Rio de Janeiro, in association with Germany's ThyssenKrupp
Steel AG. Additionally, it has planned to implement another steel
project in Ceara state, in partnership with South Korea's Dongkuk
Steel and Italy's Danieli.
In December 2006, CVRD favored Baosteel in the choice of the
reference price for iron ore trade in 2007. This is the first time
that the Brazilian mining company has favored a Chinese company in
the choice of the price.
(Xinhua News Agency August 24 2007)?
