Chinese steelmaker Wuhan Iron and Steel Co. (WISCO) and Brazilian billionaire Eike Battista have signed a joint venture deal worth up to $5 billion for the establishment of a steel mill at the Acu Port complex in Rio de Janeiro. The venture marks China's biggest investment in Brazil and also China's largest overseas project for the construction of a steel mill.
The joint venture was originally announced in November. Batista's EBX Investimento Ltda. and WISCO will have respective 30 percent and 70 percent shares in the project. The steel mill is expected to be put into production within three years.
Speaking at the signing ceremony, Mr. Battista said that the mill's annual capacity of crude steel will reach 5 million mt, to be used mainly for Brazil's automobile, shipbuilding and oil industries, while steel will also be exported to China. The project, he said, will not only save the trouble of shipping iron ore to China, but will also create jobs for local people.
Construction of the plant remains subject to a feasability study.