Shanghai-based steel producer Baosteel announced that it signed a feasibility study regarding construction of a steel mill in northern Brazil.
Baosteel said that the project, which will also involve Companhia Vale do Rio Doce (CVRD), the world's largest iron ore producer, will be the largest Chinese foreign direct investment to date.
The steel JV is planned to be constructed in Brazil's Maranhao state and is projected to produce around 3.7 million metric tons of steel slabs annually. Neither firm commented on the project's cost.
Baosteel and CVRD recently signed a supply deal to fix iron ore prices for 2004.