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Vale, Dongkuk Start Construction Work at CSP
12/29/2009 - Vale and Dongkuk have started construction work at Companhia Siderúrgica do Pecém (CSP), the first integrated steel mill featuring a coking plant in Brazil's Northeast region. CSP is due to come on stream in 2013, with estimated annual output of 3 million tonnes of steel plates in the first phase.
Vale and Dongkuk have started construction work at Companhia Siderúrgica do Pecém (CSP), the first integrated steel mill featuring a coking plant in Brazil's Northeast region. The project is located at Pecém Industrial and Port Complex (CIPP) in São Gonçalo do Amarante, Ceará State.
CSP is due to come on stream in 2013, with estimated annual output of 3 million tonnes of steel plates in the first phase, which may be expanded to 6 million tonnes in a second phase. In addition to steel plates, CSP will also produce electricity for its own use, with surplus power sold on the domestic market.
Around US$4 billion will be invested in CSP in the first phase.
CSP is part of Vale's strategy to encourage new steel projects in Brazil by means of temporarily holding minority stakes in order to become the exclusive iron ore and pellet supplier.
CSP is part of Vale's strategy to encourage new steel projects in Brazil by means of temporarily holding minority stakes in order to become the exclusive iron ore and pellet supplier.
Ceará was chosen because of its logistical infrastructure and favorable strategic location for the export market, according to the companies. The steel mill will also benefit from CIPP's port infrastructure, with facilities for handling raw materials and end products, as well as easy road and rail access.
At the end of November, CSP was awarded a Preliminary Permit from the state government of Ceará to begin construction work, starting with earthworks. The permit was issued after unanimous approval was given by the members of the State Environment Council, COEMA, which examined the project's Environmental Impact Study and Environmental Impact Report. Around 25% of total investment will be allocated to modern equipment that will control air emissions and effluent discharge as well as manage waste, according to the companies.
At the end of November, CSP was awarded a Preliminary Permit from the state government of Ceará to begin construction work, starting with earthworks. The permit was issued after unanimous approval was given by the members of the State Environment Council, COEMA, which examined the project's Environmental Impact Study and Environmental Impact Report. Around 25% of total investment will be allocated to modern equipment that will control air emissions and effluent discharge as well as manage waste, according to the companies.
CSP will partner with educational institutions to provide technical training courses to create a supply of professionals to fill the vacancies. Some of the demand for specialist labor will be met through a partnership between CSP and the state government of Ceará, involving the building of a Technical Business Training Center exclusively designed to supply professionals to meet the requirements of companies located at CIPP.
Estimated timeline for building CSP:
Estimated timeline for building CSP:
▪ 2010 - Earthworks
▪ 2011 - Civil engineering works
▪ 2012 - Equipment arrives
▪ 2013 - Equipment assembled and mill begins operating.
▪ 2011 - Civil engineering works
▪ 2012 - Equipment arrives
▪ 2013 - Equipment assembled and mill begins operating.
Dongkuk Steel, a South Korean steel company founded more than 50 years ago, is the main company in the Dongkuk Group, one of the 20 biggest conglomerates in South Korea. Besides steel, the group has interests in the machinery, logistical, and information technology sectors. The third largest steelmaker in South Korea, Dongkuk Steel is the country's second largest producer of steel plates, with around 2000 employees. It is also the world's biggest importer of steel plates, at around 4.5 million tonnes per year. The company's annual production capacity is 7.35 million tonnes, made up of 4.1 million tonnes of steel plates, 1.1 million tonnes of profiles, and 2.15 million tonnes of rods.
At present, Vale is directly involved in three major steel projects in Brazil, apart from CSP. Last year, the country's steel industry produced 34 million tonnes of crude steel. The four projects being developed will add 15.5 million tonnes to the sector's capacity, representing an expansion of more than 50% in the country's annual production capacity.
Last month, Vale and Aço Cearense presented a Memorandum of Understanding to the state government of Pará for a project to produce rolled and coated steel at a site next to the Aços Laminados do Pará (Alpa) plant in Marabá, Pará State. The purpose of the agreement is to carry out an economic feasibility study to build a plant in Marabá able to produce hot-rolled steel (710 thousand tonnes per annum capacity), cold-rolled steel (450 thousand tonnes per annum capacity), and galvanized steel (150 thousand tonnes per annum capacity) using steel plate supplied by Alpa. The plant's site will be provided free of charge.
The feasibility study is due to be completed by April 2010; then Vale will be responsible for preparing a detailed engineering plan. If the two companies decide to go ahead with the project, a company will be created owned 25% by Vale and 75% by Aço Cearense, with the latter responsible for construction, operations, and sale of products on behalf of the new company.
ThyssenKrupp CSA - Currently being built in Santa Cruz, in the municipality of Rio de Janeiro, this new plant will have annual output of 5 million tonnes of steel plates. The project takes in a port, coking plant, and thermal power plant. The plant is due to come on stream in mid 2010.
Companhia Siderúrgica Ubu - This project, which will have annual output capacity of 5 million tonnes of steel plates, will be located in Espírito Santo State. The plant is expected to begin operating in 2014.
Aços Laminados do Pará - In August 2008, Vale announced its intention to invest in building a steel mill in Marabá, Pará State, with annual production capacity of 2.5 million tonnes of steel.
Last month, Vale and Aço Cearense presented a Memorandum of Understanding to the state government of Pará for a project to produce rolled and coated steel at a site next to the Aços Laminados do Pará (Alpa) plant in Marabá, Pará State. The purpose of the agreement is to carry out an economic feasibility study to build a plant in Marabá able to produce hot-rolled steel (710 thousand tonnes per annum capacity), cold-rolled steel (450 thousand tonnes per annum capacity), and galvanized steel (150 thousand tonnes per annum capacity) using steel plate supplied by Alpa. The plant's site will be provided free of charge.
The feasibility study is due to be completed by April 2010; then Vale will be responsible for preparing a detailed engineering plan. If the two companies decide to go ahead with the project, a company will be created owned 25% by Vale and 75% by Aço Cearense, with the latter responsible for construction, operations, and sale of products on behalf of the new company.
ThyssenKrupp CSA - Currently being built in Santa Cruz, in the municipality of Rio de Janeiro, this new plant will have annual output of 5 million tonnes of steel plates. The project takes in a port, coking plant, and thermal power plant. The plant is due to come on stream in mid 2010.
Companhia Siderúrgica Ubu - This project, which will have annual output capacity of 5 million tonnes of steel plates, will be located in Espírito Santo State. The plant is expected to begin operating in 2014.
Aços Laminados do Pará - In August 2008, Vale announced its intention to invest in building a steel mill in Marabá, Pará State, with annual production capacity of 2.5 million tonnes of steel.
