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.