ThyssenKrupp AG and Brazilian ore producer Companhia Vale do Rio Doce (CVRD) are to build a new steel mill in the state of Rio de Janeiro. Prof. Dr. Ekkehard Schulz, Chairman of the Executive Board of ThyssenKrupp AG, and Prof. Dr. Ulrich Middelmann, Vice Chairman of the Executive Board of ThyssenKrupp AG and Chairman of the Executive Board of ThyssenKrupp Steel AG, presented the project to the President in Brasilia today. Prof. Dr. Schulz referred to the traditionally good relations between the Group, which with sales of over 39 billion euros and some 185,000 employees worldwide is one of Germany`s leading companies, and Brazil. With sales of 600 million euros and just under 9,000 employees, Brazil is a key location for ThyssenKrupp. "We are pleased that we will be able to implement the Group`s biggest foreign investment to date in this country and confident that it will be an economic success," said Prof. Dr. Schulz. The letter of intent on the acquisition of a site at the Sepetiba location was signed in Rio de Janeiro yesterday.
Under preliminary plans, the project will have an annual capacity of 4.4 million metric tons of crude steel. The investment in two blast furnaces, a melt shop with two converters and two continuous casters designed to the most advanced environmental standards will amount to 1.3 billion euros. The slabs produced will be exported to the growth markets of the NAFTA countries and to Europe. Production of the first slab is planned for mid-2008. Prof. Dr. Middelmann said: "In CVRD we have found a strong Brazilian partner for the optimal realization of our growth strategy. The investment will pay off thanks to the cost advantages of Brazil as a production location, with its direct access to the raw materials. It is more cost-effective to transport slabs than iron ore." The plans are part of ThyssenKrupp Steel`s strategy aimed at sustainable value enhancement and maintaining a leading position in the global steel industry.