A new strategic partner Monday confirmed its intention to join Companhia Siderúrgica do Pecém - CSP.
Posco - South Korea's largest steel producer and one of the biggest in the world - has announced they will join Vale and Dongkuk in the project, which is being built at the Pecém Industrial and Port Complex (CIPP) in the state of Ceará, Brazil. The new CSP shareholders participation will be, approximately, Vale 50 percent, Dongkuk 30 percent and Posco 20 percent.
According to Vale's CEO, Roger Agnelli, the entry of the new partner demonstrates international investors' interest in projects in Brazil.
Posco's participation is strategic in terms of developing the CSP project. "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 will be an integrated mill capable of producing 3 million tons of steel slabs for the export market, and this figure may reach 6 million tons in a second phase. Implementation began on 16 December 2009 and earthmoving activities are currently proceeding. The steel mill is due to be operating in 2014.
CSP is one of the most important private projects in the Northeast region of Brazil, and one of the biggest in the country, requiring a planned investment of US$4 billion. Besides steel slabs, CSP will also produce electricity for its own use, with surplus power sold on the domestic market.