Metals - Brazil

Posco, Praxair sign US$40.5mn contract for Brazil's CSP steel plant

Posco, Praxair sign US$40.5mn contract for Brazil's CSP steel plant

By -

South Korean steelmaker Posco has signed a US$40.5mn contract with US industrial gases producer Praxair (NYSE: PX) for the construction of an air separation unit (ASU) for steel manufacturing in Brazil, Korea Joongang Daily reported.

The ASU will be built at the US$4.34bn Companhia Siderúrgica do Pecém (CSP) steel mill in northeast Brazil's Ceará state. The unit is scheduled to be completed by August 2015.

Posco's engineering and construction division was awarded the construction contract for the mill in December 2011 and the company started works in June last year. Earthworks were completed in December.

The CSP mill is scheduled to begin operating by end-2015 and will increase the state's GDP by 12%.

CSP is expected to produce 3Mt/y of steel slabs in the first phase, and can be expanded to 6Mt/y in phase two.

Brazilian mining giant Vale (NYSE: VALE) holds a 50% stake in CSP, Korean steelmaker Dongkuk has 30% and Posco the remainder.