Brazilian logistics company LLX Logistica SA Wednesday announced plans to build a steel mill with Latin American steelmaker Ternium at Acu, an industrial port in Brazil's Rio de Janeiro state that is currently being developed by LLX. The project will begin with an environmental licensing phase.
The new mill, which will be 100 percent owned by Ternium, will have the capacity to produce 5.6 million metric tons of crude steel annually.
The agreement involved two separate accords: The first involved Ternium acquiring 100 percent of LLX subsidiary Siderurgica Norte Fluminense SA, a unit set up by LLX to develop steelmaking at Acu.
The second accord was signed between LLX and Ternium, allowing Ternium to use Acu's port facilities to export the steel it produces at the mill and import coal to be used as a raw material .
Another project in the works at the Acu port is a recently-signed agreements between LLX parent company EBX and Wuhan Iron and Steel Group, China's third biggest steelmaker, to possibly building a steel slab facility with the capacity to produce 5 million metric tons per year. Ownership of the project, which is currently in the environmental licensing phase, will be split 65 percent to Wuhan and 35 percent to EBX.