Dongkuk Steel Starts BF Construction in Brazil

Dongkuk Steel starts construction of integrated steel works in Brazil with POSCO and Vale in the beginning of next year, which plans to start operation of first blast furnace with the capacity at 3 million tonnes per year in the beginning of 2015, and second blast furnace with same capacity in the future and installs hot rolling mill. JFE Steel announced on Friday the firm mulls to invest to this project.

Mr. SaeJoo Chang, chairman of Dongkuk Steel, announced in construction ceremony of quay and conveyer for transport of raw material on Thursday the firm constructs steel works, which has highest competitive power in the world with POSCO and Vale. Mr. Dilma Rousseff, president of Brazil, announced the government supports the project for development of north east area in Brazil.

Mr. Murilo Ferreira, CEO of vale, said Vale supplies high quality iron ore to new blast furnce. Mr. Ki-Hong Park, executive managing director of POSCO, said the project is ideal joint business model by the largest iron ore supplier, Vale, large slab user, Dongkuk Steel and world supreme steel maker, POSCO. He said POSCO will construct supreme steel plant.

Dongkuk Steel and Vale advanced construction work of land engineering and belt conveyer in construction land with 990 hectares. The joint venture is controlled 50% by Vale, 30% by Dongkuk Steel and 20% by POSCO.