Insiders at Chinese steelmaker Wuhan Iron and Steel Corporation (WISCO) have disclosed that the steel producer intends to invite the China Development Bank (CDB) to join its Brazilian project as it seeks additional financing for this project. In addition, the company officials also stated that WISCO's main work focus in 2010 will be on its Brazilian project and on its Fangchenggang steel base project.
At the end of November 2009 WISCO signed an agreement with Brazil's Rio de Janeiro-based EBX Group aimed at providing WISCO with access to EBX iron ore while also enabling EBX to build a new steelmaking facility. According to the agreement, WISCO will invest $400 million in shares of MMX, a subsidiary of EBX Group, and will become the secondary shareholder in MMX.
At the end of 2009, WISCO signed an agreement with the China Development Bank to secure RMB 80 billion in credit. WISCO general manager Deng Qilin had at the time expressed hope for additional investment from CDB for its Brazilian project.