Dongkuk Steel Starts Construction of Steel Plant in Brazil Next Month

Dongkuk Steel plans to start construction of integrated steel works in Brazil with Vale and POSCO in August. The firm already completed adjustment with 2 companies about such as equipment specification and will have a formal agreement for construction in near future. The firm plans to construct steel works including slab plant with the capacity at 3 million tonnes per year in first phase and to start operation at the end of 2014.

These 3 companies are holding council about frame of taking-over of slab at 3 million tonnes from new steel plant, said Mr. Kim Kye-bok executive managing director of Dongkuk Steel in interviewed with Japan Metal Bulletin. Mr. Kim expects Dongkuk Steel changes operation system to integrated steel production for plate business from upstream and improves quality of plate products.

New works is controlled 50% share by Vale, 30% by Dongkuk Steel and 20% by POSCO. JFE Steel is considering capital subscription to new plant, and will acquire the share from Dongkuk Steel.

Dongkuk Steel plans to construct No.2 blast furnace in new steel plant on second phase. There is possible that Dongkuk Steel installs hot rolling mill on second phase. Mr. Kim said 3 companies are holding council about second phase, and Dongkuk Steel is considering to install hot rolling mill for supply of hot rolled coil to Union Steel, Dongkuk Steel’s group company.