Dongkuk Steel considers buying extra 20-30 percent stake in Brazil JV

Thursday, 13 October 2011 02:15:46 (GMT+3)   |  
       

Seoul, Korea-based steelmaker Dongkuk Steel Mill Co. announced Wednesday that it is considering raising its interest in a steelmaking joint venture in Brazil. Construction on the 3 million-ton-a-year steel mill, whose other owners include POSCO and Vale, is expected to be completed in 2015, at which time the partners may construct a second steel mill.

According to media reports, after Dongkuk, POSCO and Vale begin construction on the second mill, Vale, which currently owns a 50 percent stake in the venture, may divest a part of its stake which Dongkuk may then purchase along with POSCO--as much as 20 to 30 percent. Dongkuk currently owns a 30 percent stake in the joint venture.