As the completion of Vale’s JV steel project, Companhia Siderurgica do Pecem (CSP), approaches, the company looks at ways to monetize its operations, which is expected to be 100 percent destined for the export market.
The company, which has Dongkuk and Posco as its partners, is now 93 percent complete and should reach its 3 million steel slabs/year capacity in about three or six months after the company’s start-up, which is expected to be end-H1 2016 or early H2 2016.
With sales in USD and costs in BRL, the company expects to export its steel slabs to Korea, the US and parts of Europe.
According to a media report, the company is considering to build a rolling mill in the “long term” in order to supply Brazil’s domestic market. As an exports-focused company, CSP received fiscal benefits from the state of Ceara, where the plant is being built. Those benefits prevent the JV mill to supply more than 20 percent of its production to the domestic market.
CSP is today Brazil’s second largest private investment, just behind Vale’s SD11 iron ore project.
Posco will provide CSP’s steelmaking technology, while Vale will be CSP’s iron ore provider.
The company is already auto sufficient in energy, since it built a 200 megawatts thermoelectric. Out of its total capacity, about 30 megawatts of electricity will be sold to other companies. Currently, CSP is looking for a technology partner to help it to monetize its energy production business.