Rio de Janeiro, RJ 29 November, 2011 ââ¬â Vale, the Brazilian mining giant and largest producer of iron ore in the world, released its investment plan for 2012 with US $ 563 Million marked for the new steel Mill at Pecém, Ceará. Vale will own 50% of a joint venture called CSP, Pecém Steel Company, together with two South Korean firms, Dongkuk with a 30% stake, and Posco, holder of 20%. Valeôs $563 Million is to fund Valeôs share of the partnership only, the total being twice that. By the time of completion the new plant is budgeted to cost a total investment of US$ 4.4 Billion, half of that in the form of foreign direct investment from the South Korean partners.
Pecem Steel Company first in Pecémôs Export Processing Zone
CSP, the new steel Mill, is the first company to be sited within the Export Processing Zone (EPZ) already being leveled and graded preparing for construction. The New EPZ, one of several throughout Brazil, gives companies powerful financial incentive, exempting those located in the zone from value added and other domestic taxes. More than 100 other companies are expected to follow close behind including Petrobras, producing more than 150,000 new permanent jobs in Pecém over the next five years.
From within the EPZ the new CSP Steel Mill Will export the bulk of its production in compliance with the enabling EPZ legislation, but still retain the right to sell up to 20% of its output domestically, as the company sees fit. The EPZs make the companies more profitable and Brazilian products made within the zones more competitive in the world markets. When complete and in full production the plant is scheduled to turn out 1.2 Million tons of steel per year.
