The Supervisory Board of ThyssenKrupp Steel AG recently approved plans to conclude a joint feasibility study with Brazilian iron ore producer Companhia Vale do Rio Doce (CVRD) on the construction of a steel mill in Brazil. This procedure has also been approved by the Supervisory Boards of ThyssenKrupp AG and ThyssenKrupp Stahl AG.

The study, which is to be completed by summer 2005, will be followed by the creation of a joint venture company, Companhia Siderúrgica do Atlântico (CSA). The joint venture company will conclude the feasibility study and implement the project.

Under preliminary plans, the project will have an annual capacity of 4.4 million tonnes. The investment in two blast furnaces, a melt shop with two converters and two continuous casters will amount to €1.3 billion. Slabs produced at the new facility will be exported to growth markets in the Nafta countries and to Europe. Production of the first slab is planned for 2008.

Prof. Dr. Ulrich Middelmann, Executive Board Chairman of ThyssenKrupp Steel AG, 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. It is cheaper to transport slabs than bulky ore.” The plans in Brazil are part of ThyssenKrupp Steel’s strategy aimed at sustainable value enhancement and maintaining a leading position in the global steel industry. The main pillars of this strategy are continued cost reductions and efficiency improvements, technology leadership, internationalization and globalization.

Roger Agnelli, CEO of CVRD, the largest producer of iron ore and pellets in the world, welcomed the partnership: “CVRD is happy to have ThyssenKrupp Stahl as a partner in an investment that will represent a major step forward in the world steel industry and certainly will contribute to the Brazilian development.