Posco seals $4.3 bn deal for Brazil steel plant

South Korea's Posco Engineering and Construction said today it has won a $4.3 billion deal to build a steel mill in Brazil with an annual capacity of three million tonnes.

South Korea's Posco Engineering and Construction said on Friday it has won a $4.3 billion deal to build a steel mill in Brazil with an annual capacity of three million tonnes.

It said it would sign a contract with Companhia Siderurgica do Pecem later in the global day for the integrated mill, which will be completed by 2015.

Companhia Siderurgica do Pecem is a joint venture between Brazil's Vale with a 50% stake, South Korea's Dongkuk Steel Mill with 30% and Posco which holds 20%.

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The mill's slab production, a semi-finished steel product, will mostly be supplied to Dongkuk Steel Mill.

Posco said in a statement the contract is the biggest deal won by a Korean company for a single steel plant.

The mill "is a mega project in all aspects and it will be recorded as a significant deal in Korea's construction history", Posco Engineering and Construction chief Chung Dong-Hwa was quoted as saying.