Sao Paulo (Platts)--1Feb2013/640 am EST/1140 GMT
Vale continues to develop the Companhia Siderrgica de Ubu (CSU) steel project in Brazil and look for a majority partner, a company spokeswoman said Thursday, denying local media reports that the slab project had been canceled. "At this point, we await the definition of a partner, which will be responsible for final settings as well as the construction and operation of the plant," she said, adding that Vale intends to be a minority shareholder. The $5 billion slab project, to be located in the southeastern state of Esprito Santo, is expected to produce 5 mt/year. Initially, operations were expected to begin in 2014. Meanwhile, Vale is undertaking a reorganization in the steel business and eliminating investments in this sector. The company's global steel director, Aristides Corbellini, recently resigned, "and he won't be replaced," Vale said. Article continues below...Request a free trial of: Steel Markets DailySteel Markets Daily provides transparent daily and weekly assessments of iron ore, coking coal, coke, ferrous scrap and ferroalloys prices, plus insightful analysis and commentary on the day's market activities.
Vale continues to develop the Companhia Siderrgica de Ubu (CSU) steel project in Brazil and look for a majority partner, a company spokeswoman said Thursday, denying local media reports that the slab project had been canceled. "At this point, we await the definition of a partner, which will be responsible for final settings as well as the construction and operation of the plant," she said, adding that Vale intends to be a minority shareholder. The $5 billion slab project, to be located in the southeastern state of Esprito Santo, is expected to produce 5 mt/year. Initially, operations were expected to begin in 2014. Meanwhile, Vale is undertaking a reorganization in the steel business and eliminating investments in this sector. The company's global steel director, Aristides Corbellini, recently resigned, "and he won't be replaced," Vale said.
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Steel Markets Daily provides transparent daily and weekly assessments of iron ore, coking coal, coke, ferrous scrap and ferroalloys prices, plus insightful analysis and commentary on the day's market activities.
Currently, Companhia Siderrgica do Pecm (CSP), being built in Cear state, is the only steel investment Vale is advancing, but the company confirmed on Wednesday intentions to reduce its 50% ownership in the joint venture with South Korea's Dongkuk (30%) and Posco (20%), after the project's construction is completed in the third quarter of 2015. "It's a common process in Vale's steel projects. The company does not intend to become a steelmaker," the spokeswoman said.--Adriana Carvalho, adriana_carvalho@platts.com--Edited by Lisa Miller, lisa_miller@platts.com
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