Companhia Vale do Rio Doce, the world's largest producer of iron ore, and Baosteel Shanghai Group Corp., the largest Chinese steelmaker, decided to assess the feasibility of implementing a joint venture to build and operate an integrated steel plant in Sao Luis, Brazil. The plan is to build a facility capable of producing about 3.7 million tons per year of steel slabs. The project considers also the possibility for a future capacity expansion to 7.5 million tons of steel slabs per year.
CVRD and Baosteel signed with Ferrostaal AG, a German engineering services company, and CISDI Engineering Co. Ltd., a Chinese engineering company, an Engineering Service Agreement for the Basic Engineering and a Bankable Feasibility Study of the Project. Ferrostaal and CISDI will prepare a complete report to support decision-making by CVRD and Baosteel. Arcelor, the world's largest steelmaker, also intends to participate in the project.