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Your email address will not be published.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

Brazil Market Upbeat Despite High Interests

The decision to increase the government’s annualized benchmark interest rate (Selic) by 0.50% at ...

Brazil Becoming a Cocaine Producer

Cocaine production in Brazil is beginning to worry international agencies. The representative to Brazil ...

Another Government Party Official Steps Down in Brazil Due to Corruption Charges

The secretary general of the PT, SÀ­lvio Pereira, has requested a leave of absence. ...

Brazil’s Arab Summit: Plenty of Reproach to US and Israel

The BrasÀ­lia Declaration, a result of the first Summit of South American – Arab ...

Brazil Warns Bolivia: Raise Gas Too Much and We Will Stop Buying It

The Brazilian minister of Foreign Relations, Celso Amorim, stated today, May 5, that Brazil ...

In Brazil While Foreign Investment Goes Down Dollar and Deficit Are Up

Foreign direct investment (FDI) in Brazil was $25.949 billion in 2009, down 42.41%, compared ...

Carnaval: Brazil Intensifies Sex Slavery Campaign

Brazil’s campaign against human trafficking will be intensified at the international airport of Recife, ...

250,000 Brazilians Sign Petition Calling for Morality in Politics

The Brazilian movement From Indignation to Action presented a document, Wednesday, October 26, containing ...

Brazil’s PT Short Journey from Model Party to As Shady As the Other Guy

Revelations of widespread corruption in the upper reaches of the Workers Party government in ...

Brazil advertises for food products in Germany during World Cup

Brazil Promotes Other Stars in Germany: Soy, Coffee and Orange Juice

If it depends of the Ministry of Agriculture, Livestock and Supply of Brazil, Ronaldinho ...