Brazilian President Luiz Inácio Lula da Silva welcomes the plans of ThyssenKrupp AG and Brazilian ore producer Companhia Vale do Rio Doce (CVRD) to build a new steel mill in the state of Rio de Janeiro. The project was presented to the President in Brasilia by Prof. Dr. Ekkehard Schulz, Chairman of the Executive Board of ThyssenKrupp AG, and Prof. Dr. Ulrich Middelmann, Vice Chairman of the Executive Board of ThyssenKrupp AG and Chairman of the Executive Board of ThyssenKrupp Steel AG.

Under preliminary plans, the project will have an annual capacity of 4.4 million tonnes of crude steel. The investment in two blast furnaces, a meltshop with two converters and two continuous casters designed to the most advanced environmental standards will amount to €1.3 billion. The slabs produced will be exported to the growth markets of the Nafta countries and to Europe. Production of the first slab is planned for mid-2008.

With sales of €600 million and just under 9,000 employees, Brazil is a key location for ThyssenKrupp. "We are pleased that we will be able to implement the Group's biggest foreign investment to date in this country and confident that it will be an economic success," said Prof. Dr. Schulz. The letter of intent on the acquisition of a site at the Sepetiba location was signed in Rio de Janeiro.

Prof. Dr. Middelmann said: "In CVRD we have found a strong Brazilian partner for the optimal realization of our growth strategy. The investment will pay off thanks to the cost advantages of Brazil as a production location, with its direct access to the raw materials. It is more cost-effective to transport slabs than iron ore." The plans are part of ThyssenKrupp Steel's strategy aimed at sustainable value enhancement and maintaining a leading position in the global steel industry.

Relations between ThyssenKrupp and Brazil go back a long way. Today the Group is represented by 24 companies there. Brazil is ThyssenKrupp's number one market in South America. Most of the activities are in the Automotive and Elevator segments. With eleven local subsidiaries and almost 6,800 employees, the Automotive segment is one of the leading automotive suppliers in Brazil. The largest single company with almost 3,200 employees is Krupp Metalúrgica Campo Limpo Ltd., which was formed as an automotive supplier back in 1959. ThyssenKrupp Elevadores SA, the third largest elevator manufacturer in Brazil, employs 1,800 people. The company's business is handled via regional centers and several hundred service units throughout the country.