Germany and Brazil Join Forces in US$ 3 Billion Steel Project

    Luiz Fernando Furlan, Brazil’s Minister of Development, Industry and Foreign Trade, participated last week in the ceremony for the placing of the foundation stone of Companhia Siderúrgica do Atlântico (CSA), in the industrial district of Santa Cruz, in the southeastern Brazilian state of Rio de Janeiro.

    The enterprise is the result of a joint venture between German company ThyssenKrupp and the Brazilian mining company Companhia Vale do Rio Doce, and will receive investment of 6.5 billion reais (US$ 3 billion).

    The start of the factory’s operations is scheduled for 2009 and the idea is to produce steel plates exclusively for export, mainly to Europe and North America. The German multinational will have 90% participation in the business, and Vale will have 10%.

    The forecast is that the complex should have a production capacity of 5 million tons of plates a year, with the generation of 3,500 direct jobs. During the construction, according to information by the Ministry of Development, Industry and Foreign Trade, a total of 18,000 jobs should be created.

    The plant’s capacity may be doubled to 10 million tons a year in the future. Apart from the mill, the complex will also count on a port to export the produce. The project is considered by the Brazilian government a marker in the country policy of reducing investment cost.

    According to the Ministry of Development, the enterprise will have a 50% tax break on the import of capital goods, as well as a loan of US$ 300 million by the Brazilian Development Bank (BNDES).

    "The cheapening of investment in Brazil creates competition with other countries," stated Furlan, adding that ThyssenKrupp may invest another US$ 1 billion in the country in operations in the energy area, with the possible construction of a thermoelectric power plant.

    Anba

    Tags:

    • Show Comments (0)

    Your email address will not be published. Required fields are marked *

    comment *

    • name *

    • email *

    • website *

    This site uses Akismet to reduce spam. Learn how your comment data is processed.

    Ads

    You May Also Like

    Brazilian Embraer Jets Now Come in Light and Very Light Flavors

    Brazilian aircraft manufacturer Embraer today announced it is strengthening its position in the business ...

    Brazil Takes Its Profit and Runs

    Latin American markets ebbed across the board, as investors cashed in on recent gains. ...

    Brazil Ready to Use 20-Minute HIV Tests

    Brazil will start performing “rapid tests” for the diagnosis of AIDS until the end ...

    For Brazil and the Poor the WTO Meeting Is a Marked Cards Game They Can’t Win

    For those who have observed the WTO’s negotiation process at the ministerials in Seattle, ...

    Petrobras rig

    US Judge Hears Investors Claiming to Be Defrauded by Petrobras

    Brazil’s state-run oil company Petrobras urged a U.S. judge to throw out an investors’ ...

    Brazilian Police Sweep 13 States in Search of Software Pirates

    About 350 Brazilian federal agents swung into action today in a multi-state operation to ...

    Time for a Gentler Economic Policy in Brazil

    Brazilian Economist Walter Brasil Mundell believes that the Brazilian economy will grow more in ...

    Brazil Launches Aggressive Campaign Against Child Sex Abuse

    Brazilian government efforts to combat sexual exploitation of children and adolescents are gaining reinforcement ...

    Brazil's degraded soil

    Brazil Plan: To Recover Degraded Areas and Double Cattle Population

    Brazil has a plan to increase agricultural production without the use of new lands. ...

    Little Hope US Will Let Brazil Sell Military Jets to Venezuela

    The US State Department thinks Venezuela is on a military spree that is not ...