Sunoco cuts financing of Arcelor’s CST coke plant
Officials from Arcelor-owned Brazilian steelmaker Companhia Siderurgica de Tubarao (CST) have announced that Sunoco has reduced its planned $400 million investment in its coke plant due to concerns about regulations. CST will now finance 60% of the project with the remaining balance split between Sunoco, Inc., America's largest oil refiner and other Arcelor-controlled Brazilian steel producer Companhia Siderurgica Belgo-Mineira (CSBM). The 1.5 million-ton coke plant will be built with a 150-megawatt power plant. CST makes carbon steel used in automaking, shipbuilding, oil pipelines, and construction. The company intends to increase production by 2.5 million tons to 7.5 million tons by 2006.