Construction of an integrated steelworks for Dongkuk Steel in partnership with Vale and POSCO is on the real track. Exclusive pier for steel plant and conveyor belt for raw materials are completed in August 2011.
Dongkuk Steel chairman Mr Sae Joo Chang, together with Vale CEO Mr Murilo Ferreira, Vale Steel global director and chairman of CSP's board of directors Mr Aristides Corbellini and EVP Mr Ki Hong Park of POSCO and also with the presence of Mr Dilma Rouseff President of Federal Republic of Brazil, performed ceremony of multi purpose terminal in Pecem Industrial Port Complex, as well as the conveyor belt for transferring raw materials. They also visited the site preparation works of the 990 hectare land for the integrated steelworks.
This is the first official event, and first step, among the three companies after the decision of POSCO in joining CSP as a shareholder and, it is a fruition of the 10 year perseverance of Dongkuk in implementing a steel project in the Northeast of Brasil.
During the course of time, the State Government of Ceara has been expanding the port facilities, as well as, constructing the conveyor belts for raw materials transportation, procuring the necessary basic infrastructure for the operation of the steel plant.
Mr Dilma presided the completion ceremony of the port construction and one of the conveyor belts.
Mr Sae Joo Chang chairman of Dongkuk Steel, who has taking co lead of Brazilian project, said that "I have been working hard for the last 10 years in order to construct an integrated steelworks in Brazil and CSP will be the most competitive integrated steelworks of the world."
Mr Sae Joo Chang also disclosed his determination by saying that "Dongkuk Steel and POSCO will take an example of miraculous history of raising steel industry in Korea and will create a steel belt connecting Korea and Brazil at all costs."
Mr Ki Hong Park senior MD of POSCO said on behalf of chairman Mr Joon Yang Chung that "CSP is the most ideal joint venture model being created together by Vale, the world largest iron ore supplier and Dongkuk Steel, one of the world biggest purchasers of steel slabs."
Vale CEO Mr Murilo Ferreira said that "Vale has always been supportive of this project, which will bring further development and growth to this key region in Brazil. As a mining company, our goal is to promote the development of steelmaking in the country, creating additional demand for iron ore. This venture is a combination of forces Dongkuk's tradition in the slab market, POSCO's expertise and steel production technology and Vale's high quality iron ore."
Dongkuk Steel, upon completion of the steelworks in Brazil, will become a third company in Korea to procure an integrated steelworks and will be capable of receiving the supply of steel slabs of high standard steels of semi finished product for steel plates.
The steel plant in Brazil to be constructed by Vale, Dongkuk Steel and POSCO will be an integrated steel mill for 3 million tonnes per year of slabs in its first stage. A second stage up to 6 million tonnes per year is a possibility for the near future. This integrated steelworks is in the form of such way as the iron ore is supplied by Vale, the construction and technical support is given by POSCO, and the demand of finished product is mainly absorbed by Dongkuk Steel.
Meanwhile, Mr Dilma Rouseff gave the name to the multi purpose port in Pecem harbor as Songwon Port, named after the pen name of Mr Sang Tai Chang, the late father of chairman Mr Sae Joo Chang. Songwon Pier is the first case where a local port facility has been named with a Korean name in Brazil.
