ThyssenKrupp and CVRD to establish steel plant

ThyssenKrupp and CVRD to establish steel plant

According to recent news in the market, German steel producer ThyssenKrupp AG is planning to establish a 4.4 million ton-steel plant in southeastern Brazil as a part of a venture with Brazilian mining giant Companhia Vale do Rio Doce (CVRD). It is reported that the new plant will be built in Itaguai, near the port of Sepetiba in Rio de Janeiro state. The plant will be equally shared between ThyssenKrupp and CVRD. However, analysts were not expecting CVRD to buy 50% shares of the steel plant as the company had previously announced that it would only buy minority stake in steel companies since it does not want to compete with buyers of its iron ore.