Vale SA announced that it has signed a MoU with ThyssenKrupp Steel AG to increase its stake in ThyssenKrupp CSA Siderúrgica do Atlântico Ltda to 26.87%, from its current 10% interest, through a capital infusion of EUR 965 million.
This investment decision is still subject to, among other conditions, the approval of the Board of Directors of both Vale and ThyssenKrupp.
CSA is building an integrated steel slab plant, with nominal capacity of 5 million tonnes of slab per year, in the state of Rio de Janeiro, Brazil. The current expected start-up is the first half of 2010. As a strategic partner of ThyssenKrupp, Vale is the sole and exclusive supplier of iron ore to CSA.
Through this additional capital contribution, Vale confirmed its engagement in the largest industrial investment under construction in Brazil in the last ten years and the first large steel mill to be built in the country since the mid eighties, providing a strong support to the project completion.