Feb 3 2004
The world’s largest producer of iron ore, Companhia Vale do Rio Doce and China’s largest steelmaker Baosteel have signed a contract that will see them assess the feasibility of implementing a joint venture to build and operate an integrated steel plant in Maranhao, Brazil.
Other parties involved in the project are Ferrostaal AG, a German engineering services company and CISDI Engineering Co, a Chinese engineering services company. They will be involved with the preparation of a bankable feasibility study for the project. The world’s largest steelmaker, Arcelor is also intending to be involved with the project.
The proposed plant will produce approximately 3.7 million tons per year of steel slab, but will also be designed with the possibility of future expansion to 7.5 million tons. Should the project go ahead, it will also mean that there will be increased demand of iron ore from Companhia Vale do Rio Doce .
The project is the largest investment in Brazilian steel for many years and has the support of Brazilian and Chinese governments.
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