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|Vale Signs MOU To Acquire Additional Stake In CSA|
|= Increasing stake from current 10% to 26.87% =|
Brazilian Vale announced July 22 that it has signed a Memorandum of Understanding (MOU) with ThyssenKrupp Steel AG to increase its stake in ThyssenKrupp CSA Siderúrgica do Atlântico Ltda (CSA), from its current 10% interest to 26.87% through a capital infusion of Eur$965 million. The acquisition is in accordance with the invitation of ThyssenKrupp. The investment is subject to, among others, the approval of the Board of Directors of both Vale and ThyssenKrupp.|
CSA is advancing construction of a 5.0-Mt/a integrated steel slab manufacturing plant in the state of Rio de Janeiro, Brazil, with operation scheduled to start in the first half of 2010. Production from this plant will be destined for ThyssenKrupp Group's production facilities in the USA and Germany as raw materials for further processing.
Around 40% of the slabs produced in Brazil are to be shipped to Germany for processing into high-quality finished products for demanding customers. The investment projects to facilitate slab handling at Walsum port and increase capacity at four hot-dip coating lines have been completed.
Hot- and cold-rolling and coating lines in Alabama, the USA are expected to come into operation in the spring of 2010. Total hot-rolling capacity will be over 5 million tons per annum.
As a strategic partner of ThyssenKrupp, Vale is the sole and exclusive supplier of iron ore to CSA.
|last modified : Wed 29 Jul, 2009 [10:40]|