According to local German sources, German industrial conglomerate ThyssenKrupp AG is looking for partners for several parts of its business to limit the impact of the economic downturn.
Based on this issue, ThyssenKrupp is considering offering Brazilian iron ore miner Vale SA (Vale), formerly Companhia Vale do Rio Doce, a larger stake in the new steel plant, ThyssenKrupp CSA Companhia Siderùgica, which the German steelmaker is currently building in Santa Cruz, 50 kilometers west of the city of Rio de Janeiro.
Vale already owns a 10 percent stake and ThyssenKrupp holds the remaining 90 percent in the €4.5 billion steel plant, where operations could be further delayed due to the lack of demand for steel.
ThyssenKrupp chief executive Ekkehard Schulz said, "The size of the stake Vale may be offered is still unclear."
Mr. Schulz added that the company was looking for a cash transaction and to close a deal before September 30 this year.
The steel mill, which has a designed annual capacity of 5 million mt, is scheduled to start up in December 2009. The plant's output will be shipped via its own deep-water terminal.
Vale will supply iron ore to the mill via an existing railroad line.