The Globo newspaper reported that Techint plans to build a steel rolling mill in Brazil with Usiminas as a partner.

The rolling mill is likely to be built in Brazil's state of Rio de Janeiro or in the central highland state of Minas Gerais.

As per report, the rolling mill will be able to process steel from a planned Techint steel project at the Port of Acu near Rio de Janeiro and add to existing production from other group assets in Brazil.

The report added that the Techint Usiminas rolling mill and Techint project at the Port of Acu are expected to cost about USD 7 billion.

According to Mr Eike Batista the controlling shareholder of LLX Logistica, which owns the Port of Acu and is leasing a mill site to Techint, the Techint mill at Acu or a Chinese mill planned for the same port will be able to make steel slabs that are the main raw material for a rolling mill.

The paper said that the rolling mill plan is part of Techint's effort to profit from a Brazilian offshore oil boom. Brazil expects to more than triple oil and natural gas output by 2020 to about 7 million barrels a day, allowing the South American country challenge the United States for the role of world's No 3 oil producer after Russia and Saudi Arabia.

Techint controls TenarisConfab, a Brazilian steel pipe maker, and bought a 27.7% stake in Usiminas.

(Sourced fro Reuters)