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Vale Announces New Strategic Partner at Pecém Steel
Jul. 19, 2010 Posco is joining Vale and Dongkuk in the Companhia Siderúrgica do Pecém – CSP project, which is being built at the Pecém Industrial and Port Complex in the state of Ceará, Brazil. The new CSP shareholders participation will be approximately Vale 50%, Dongkuk 30%, and Posco 20%.
CSP will be an integrated mill capable of producing 3 million tonnes of steel slabs for the export market; this figure may reach 6 million tonnes in a second phase. Implementation began on December 16, 2009, and earthmoving activities are currently proceeding. The steel mill is due to be operating in 2014.
"The entry of this new partner will add even more value, as we will be supported by Posco's technology and operational experience in major integrated steel mills," said Aristides Corbellini, Director of Vale's Steel Business.
CSP requires a planned investment of US$4 billion. A significant part of the total investment is said to be allocated to acquiring modern equipment to monitor and control air emissions, liquid effluents, and other waste. Besides steel slabs, CSP will also produce electricity for its own use, with surplus power sold on the domestic market.
Vale notes that the project will help the country's steel industry to continue growing, while adding value to iron ore and generating wealth and development for the state of Ceará and the rest of Brazil. The state was chosen due to its logistics facilities and its strategic location close to export markets.