Brazil's mining giant CVRD to start joint-venture steel plant
(Xinhua)
Updated: 2006-09-29 14:45
Brazilian mining giant Compania Vale do Rio Doce (CVRD) in a Thursday
statement said that it has signed an agreement to build a new steel pellet plant
in China.
CVRD, through its subsidiary Mineracoes Brasileiras Reunidas
S.A., will have a 25 percent stake in a joint-venture (JV) called Zhuhai YPM,
which will operate the new plant in Zhuhai, China's southern Guangdong province,
according to the statement released by the Brazilian firm.
With a
planned capacity of an annual production of 1.2 million tons, the plant is
expected to begin operations in 2008.
CVRD's Chinese partners include
Zhuhai Yueyufeng Iron and Steel Co Ltd. and the Pioneer Iron & Steel Group
Co. Ltd., which will hold 40 percent and 35 percent stakes in the JV
respectively.
Under a 30-year contract, CVRD will invest 4 million U.S.
dollars and supply at least 70 percent of the plant's iron-ore feedstock.
CVRD said the deal is part of the company's strategy to support the
development of the steel industry in China, especially in the field of
pelletizing, in which CVRD is a global market leader.
The company is
confident of the JV, saying its pellet feed fits well with the local iron-ore
that is produced in China. It added that several other pelletizing plants are
being built in China, which also increased the potential demand for CVRD's
iron-ore. (For more biz stories, please visit Industry Updates)
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