Brazil’s Steel to Invest US$ 13 Billion

The Brazilian steel sector will invest US$ 13 billion on expansion through 2010. The sector expects to spend US$ 2.5 billion this year and US$ 3.5 billion in 2006.

It is estimated that up to 70,000 temporary jobs will be created during the construction phase and 40,000 permanent positions thereafter.


This information was provided by the vice-president of the Brazilian Steel Institute (IBS), Luiz André Rico Vicente, following a meeting with President Luiz Inácio Lula da Silva in the Planalto Palace.


Vicente also said that the sector hopes that 2004’s outstanding performance will be repeated this year.


Earnings soared 40% last year. He cautioned, however, about the possible negative impact of raw material price increases.


In his view, iron ore prices could rise 35-40%. As for coal, the price per ton could increase from US$ 60 to US$ 120.


Vicente informed that there is no maneuvering room in this case, since most of the coal used in Brazil comes from other countries, such as the United States and Canada.


Vicente affirmed that President Lula expressed concern over the impact of price increases on inflation.


“The big goal, according to what he told us, is the stability of inflation. This is the goal that favors the country’s poor classes the most. We shall have to do all we can to collaborate with the government in this policy,” he stated.


He said that he did not converse with Lula about price controls.


The representative of the steel mills hopes the government will continue to maintain contractual rules.


“This Administration, so far, has been exemplary when it comes to maintaining the established rules. Changes in direction are non-existent,” he emphasized.


The Ministers of Finance, Antônio Palocci, and of Development, Industry, and Foreign Trade, Luiz Fernando Furlan, were also present at the encounter.


Translation: David Silberstein
Agência Brasil

Tags:

Ads

You May Also Like

Forced to Import Used Tires from Europe Brazil Appeals to WTO

Brazil continues its struggle to keep imported used tires out of the country. Representatives ...

Middle East Buys More Soy Oil from Brazil

Brazilian soy exports to the countries of the League of Arab States grew 470% ...

Brazil’s Fashion Fair Brings Europe and LatAm Buyers

Importers from Germany, Austria, Colombia and England are in Brazil at the invitation of ...

Brazil Pays Another US$ 4 Billion in Interest on Debt

Brazil government’s non-financial sector (federal government, states, muncipalities and their state-owned enterprises) primary surplus ...

Brazil’s Development Bank Funds Petrobras’s Platforms

Brazil’s National Bank of Economic and Social Development (BNDES) is going to finance the ...

Americans in Brazil, Come November You Have the Right to Vote!

While the US general elections only happen on November 7, it’s time for the ...

Brazil: Reporter Expulsion Is No Censorship

Brazil’s Minister of Foreign Relations, Celso Amorim, avowed he would not admit anyone condemning ...

US-EU-Brazil Team Can’t Agree on How Much Water Should Go in Ethanol

A Brazilian-American-European taskforce of technicians created to define an international standard for ethanol has ...

Brazilians and Arabs Discuss Cooperation on Social Development

This week, one more chapter of the Summit of South American-Arab Countries (Aspa) should ...

Brazil Will Get 1 Million New Jobs This Year and 5% Growth the Next, Says Lula

Brazilian President Luiz Inácio Lula da Silva announced that Brazil will end 2009 with ...