Brazil's CST to increase its production capacity

Brazil’s CST to increase its production capacity

Brazil's Companhia Siderurgica de Tubarao (CST) is reportedly planning to assume a loan of $350 million in order to increase annual production capacity by 50% to 7.5 million tons by 2006. CST officials stated that $140 million will be loaned from German bank KFW Bankengruppe, $70 million will be loaned from the European Investment Bank and the remaining $140 million will be loaned from Japan Bank for International Corporation. As reported by SteelOrbis back in June, Arcelor signed an agreement with Brazilian iron ore giant Companhia Vale do Rio Doce (CVRD) to increase its shares in Companhia Siderurgica de Tubarao (CST) from 28.02% to 61.77% for $578.5 million.