Dongkuk Steel said that it broke ground on a steel mill in Brazil.

Mr Chang Sae joo chairman of Dongkuk Steel held a ceremony marking the start of construction in the Pecem Industrial District in Ceara in Brazil. Ceara State Governor Mr Cid Gomes, Brazilian miner Vale's head for iron ore Mr Jose Martins and POSCO's SVP Mr Chang In hwan also attended the event.

The company aims to finish early preparatory work by the first half of 2013 and complete construction by the third quarter of 2015. The new steel mill will be named CSP as it will be run by a JV of the same name set up by Dongkuk, POSCO and Vale.

Mr Chang said that "My decade long dream to build a steel mill in Brazil is finally being realized. CSP is the result of Dongkuk's tenacity and passion for steel, and we will make the new plant the world's best by 2015."

The three companies invested a total of USD 4.9 billion to build the 3 million tonnes steel mill. Dongkuk, which played the role of coordinator, holds a 30% stake. POSCO has 20% and Vale 50%.

In August 2011, the companies completed a wharf in the region, which will be used for conveying steel making materials. A conveyer belt carries materials from the wharf to the plant.

Subsidiary POSCO Engineering & Construction will be in charge of the construction after signing an engineering, procurement and construction contract.

Source - Korea Joongang Daily

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