POSCO contemplates building plant in Brazil

POSCO contemplates building plant in Brazil

South Korean steel producer POSCO announced Thursday that it is considering to build a steel production facility in northern Brazil's Maranhao state in cooperation with Brazilian mining giant, Companhia Vale do Rio Doce (CVRD). The world's fifth-largest steelmaker stated that it signed a preliminary agreement with CVRD on September 22 to initiate a joint study regarding the feasibility of building the plant. According to market sources, POSCO imported 41.3 million mts of iron ore last year, 10.3 million tons of which came from Brazil. If the proposed deal goes through, POSCO will have a stable supply of iron ore.