Dongkuk Steel Decides Investment of Slab Project in Brazil

Dongkuk Steel of South Korea will complete feasibility study for a slab production project by a blast furnace in Brazil within this month and evaluate the investment plan. The firm supposes the upstream process is imperative in Brazil to secure slabs stably and shift the production to higher grade steels against Chinese steel makers. The firm aims to start construction of the works within 2010.

Dongkuk Steel had advanced the project with Vale, the world largest raw material supplier. POSCO and JFE Steel may participate in the project. Dongkuk plans to construct a blast furnace of capacity at over 5 million tonnes per year to supply slabs for a plate mill of capacity at 3.5 million tonnes in South Korea.

Dongkuk Steel produced plate at 2.57 million tonnes in 2009, purchasing slabs from other steel makers such as JFE Steel. Dongkuk Steel’s plate mills have output capacity at 2.9 million tonnes in Pohang works and 1.5 million tonnes in Dangjin works. Dangjin works is expected to raise its operating rate and the slab consumption would increase in the second half of 2010.