Dongkuk Steel Desires Slab Steel Works in Brazil

Dongkuk Steel Mill decides about the construction of slab steel works in Brazil until April. Mr. Chang Sae-joo, a chairman, answered to Japan Metal Bulletins’ question on Thursday. The firm finishes the feasibility study until April and decides about the plan. Mr. Chang also expressed his willingness to build the steel works. The firm plans to produce semi-finished product to strengthen the competitiveness of plate.

Companhia Siderurgica de Pecem, a Brazilian integrated steel works joint venture of Dongkuk Steel and Vale, is conducting the feasibility study. Dongkuk Steel build the slab steel works in Brazil with US$ 40 million. The annual capacity is 3 million tonnes and the firm plans to increase the capacity to 6 million tonnes per year in the second stage. The firm started land-clearing in December 2009. The firm aims to start the construction of steel works as soon as possible.

Dongkuk Steel sees the steel works needs to equip 2 blast furnaces to produce more than 5 million tonnes of slab per year to secure the competitiveness.

JFE Steel, a business partner of Dongkuk Steel, which makes a 15% of investment, is conducting the original feasibility study to participate Dongkuk Steel’s plan when Dongkuk increases the annual capacity to 6 million tonnes.