Brazilian business daily Valor cited Mr LN Mittal CEO of ArcelorMittal as saying that it plans to invest USD 5 billion to build a new steel mill in Brazil.

Valor reported that the plans to invest in a plant in the southeastern state of Espirito Santo were announced in a meeting Wednesday in London between Mr Mittal and Brazilian President Mr Luiz Inacio Lula da Silva.

Mr Mittal told Valor that “I gave the president details about what we intend to do in Brazil.”

As per report, ArcelorMittal will partner with Brazilian mining giant Vale on the new mill, named Companhia Siderurgica de Ubu thus replacing China's BaoSteel as Vale's JV partner after the Chinese firm pulled out of the project.

Mr Mittal said that although there is currently a global surplus of steel making capacity, his company is confident about the sector's future growth prospects and has therefore chosen to invest in a mill that will take time to come on stream.

He told that “"With Brazil's future growth, steel production units can't be built from one day to the next. So we have to build thinking about that.”

Mr Mittal also said the company has its sights set on projects in Brazil that had been suspended amid the recession and praised the Brazilian government for its economic management amid an adverse global financial climate.

He told that "We have plans to expand in Brazil. We want to increase our presence in the country.”

(Sourced from COMTEX)