CBSteel’s mill in the Brazilian city of Bacabeira, in the state of Maranhao, said in a statement this week that it will initially produce wire rod and later rebar.
Brazilian officials announced last week China plans to invest $3 billion through China Brazil Xinnenghuan International Investment Co Ltd in a mill in Bacabeira, Maranhao.
According to media reports, CBSteel will initially invest $3.5 billion in the first phase of the project, and then an additional $4.5 billion, as the mill reaches a 10 million mt/year capacity.
In its first phase, the mill is expected have a 3 million mt/year capacity and will only produce wire rod. At a second phase, it will start producing rebar. Total investment is expected to reach $8 billion.
A media report said CBSteel should make the initial $3.5 billion investment alone, but Brazil miner and iron ore producer Vale was said to also be looking at the project and could potentially become a partner. Vale said it signed a memorandum of understanding (MoU) with CBSteel to provide iron ore.
The $3.5 billion investment should include a “private port” and a “smart city” to host workers building the mill.
The state of Maranhao is cautiously looking at the project, as another multi-billion USD project from state-run oil producer Petrobras failed to be built in Bacabeira.