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10. Juli 2012

China Wuhan Steel denies exit of Brazil mill plan

Reuters reported that China Wuhan Iron & Steel Group, the country fourth-largest steel producer denied a media report that said the company had abandoned plans to build a USD 5 billion steel plant in Brazil due to logistics and coking coal supply issues.

The proposed 5 million tonnes per year plant, which could be China largest investment in Brazil and its biggest steel plant build overseas is a joint venture between the Chinese steel mill and Brazil's EBX Group.

The company spokesman said "There was no withdrawal and the two parties are still working on the project."

He did not disclose at which stage the project was now.

The 21st Century Business Herald cited two sources saying Wuhan Steel dropped out the plan after a series of feasibility studies found the project was too risky due to issues including logistics, transport and coking coal supplies.

The company said "Wuhan Steel's unit in Brazil hasn't received any notice to call off the feasibility study and the two parties are moving ahead according to the plan."

Source - Reuters

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