[2019-05-30] China Communications Construction Company and Vale group team up to build a steelworks in Brazil

Source: Macauhub

The China Communications Construction Company (CCCC), in partnership with Brazilian group Vale, will build a steelworks for the production of flat steel in Marabá, in the southeast of the state of Pará, officials said recently.

The Vale group said in a statement it had signed a protocol of intent to support the financial structuring of a project to be developed by Concremat, a Brazilian construction company that the CCCC group acquired at the end of 2016.

The statement also said that Vale would support the project by issuing guarantees that allow the financing to be taken on by Concremat/CCCC, in amounts to be agreed upon later and lower than the value of the total investment.

The governor of the state of Pará, Hélder Barbalho, told the Valor Econômico newspaper that the investment needed to build the steel industry amounts to 1.5 billion reais (US$370 million).

With a capacity of 300,000 tonnes of rolled steel per year, the steelworks will be built in the industrial district of Marabá, with Barbalho projecting that the project and licensing will be completed by 2020, opening the way for the beginning of the works.

The steelworks is expected to start producing flat steel in 2023, with production destined for the domestic market, according to the state governor.

The newspaper also wrote that the state of Pará has long intended to have a steel industry, and this project was announced about 10 years ago when the Vale group announced its intention to build a unit in Marabá.