September 07, 2008

TATA Steel eying investments in Brazil – Report

SBB reported that TATA Steel is looking at investment opportunities in Brazil. As per report, Mr Ratan Tata chairman of TATA Sons during his visit to Maranhao in September 2007 met Mr Jackson Lago governor of Maranhao and discussed the possibility of investing in a Greenfield project in the state.

SBB quoted Mr Julio Cesar Teixeira Noronha industry and commerce secretary of Maranhao as saying that “TATA Steel in the next few months is to send a delegation to the Northern Brazilian state of Maranhao in order to evaluate investment opportunities there. Mr Tata promised Mr Lago to send a team in Brazil and we are now producing a presentation to show them all the favorable points that justify such an investment."

SSB said that the government of Maranhao has already informed CVRD and the Brazilian state development bank BNDES about Mr Tata's interest.

Among these points are the existence of good locations to construct a plant and low cost iron ore from Companhia Vale do Rio Doce's Carajas mine as well as nearby ports and railways.