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Vale and Baosteel to Liquidate CSV
01/19/2009 - Despite intense negotiations and analysis of alternatives, Vale and Baosteel decide to cancel their project to develop and build the proposed 5 million tonnes/year integrated steel slab plant in Brazil’s Espirito Santo state.
Vale has announced that, despite intense negotiations and analysis of alternatives, Vale and Baosteel have decided to cancel their project to develop an integrated steel slab plant in Brazil’s Espirito Santo state, and to liquidate their partnership, Companhia Siderúrgica Vitória.
Val and Baosteel had formed their partnership, Companhia Siderúrgica Vitória (CSV), in Oct. 2007 to carry out a feasibility study for the plant, which was to have an annual capacity of some 5 million tonnes. Vale said the global economic crisis, which has resulted in strongly reduced steel production worldwide, also led to a change in scenarios for the CSV project. Ultimately, Baosteel proposed cancellation of the project and the liquidation of CSV.
The two companies had previously evaluated the implementation of another steel project in Brazil, in the state of Maranhão. At that time (2005), environmental limitations and difficulties in the availability of selected sites led Vale and Baosteel to give up that project.
Despite liquidation of CSV, Vale reaffirmed its commitment to strengthening the Brazilian steel sector, and said it would continue to engage in the development and viability of new steel plants in Brazil.
The two companies had previously evaluated the implementation of another steel project in Brazil, in the state of Maranhão. At that time (2005), environmental limitations and difficulties in the availability of selected sites led Vale and Baosteel to give up that project.
Despite liquidation of CSV, Vale reaffirmed its commitment to strengthening the Brazilian steel sector, and said it would continue to engage in the development and viability of new steel plants in Brazil.
