China to build $5 billion steel plant in Brazil

10:48, April 16, 2010      

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Chinese President Hu Jintao (R) holds talks with Brazilian President Luiz Inacio Lula da Silva in Brasilia, Brazil, April 15, 2010. (Xinhua/Ju Peng)

Brazil and China Thursday signed several deals on the sidelines of a BRIC summit in Brasilia, including a huge investment pact to build a five-billion-dollar Chinese steel factory in Brazil.

The agreements were finalized during a meeting between Chinese President Hu Jintao and Brazilian President Luiz Inacio Lula da Silva before a summit between Brazil, Russia, India and China, the four so-call BRIC major emerging economies.

The summit was brought forward a day because Hu was cutting short his Brazil stay to rush back to China to handle the aftermath of a devastating earthquake.

The steel deal involved the Brazilian company LLX, a subsidiary of the EBX group controlled by Brazil's richest man, Eike Batista, and Chinese firm Wuhan Iron and Steel Corp.

The Chinese company would have a 70-percent stake, and the Brazilian one 30 percent in the facility to be opened in Rio de Janeiro state in three years' time.

"It will be the biggest Chinese investment in Brazil and the biggest by China abroad in this sector," Lula said in a joint news conference with President Hu Jintao.

Batista said the plant's annual output of 5 million tons of steel would meet demands by Brazil's automobile, shipbuilding and oil platform sectors, with the excess to be exported to China.

People's Daily Online


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