Subscribe to RSS feedBatista woos Wisco to invest Rio steel plant
CHINESE steel manufacturer Wuhan Iron and Steel Co (Wisco) has signed a landmark agreement with Brazil’s richest man, Eike Batista, that will see billions of dollars of Chinese investment fuel further growth in his rapidly expanding mining and ports empire.
Under a comprehensive memorandum of understanding, Wisco has agreed to develop a US$4bn steel plant at Mr Batista’s Au Super Port in the state of Rio de Janeiro, ship up to 33m tonnes a year of his iron ore to China and supply steel for the construction of oil platforms and vessels needed for his ambitious offshore exploration plans.
The ground-breaking agreement promises to pave the way for the biggest single investment by a Chinese company in Brazil to date, Mr Batista said.
Mr Batista, chairman of ports and logistics specialist LLX and mining sister company MMX, said the alliance “will likely represent the single most important Chinese investment in Brazil and one of the most relevant commercial joint ventures between a Brazilian group and a Chinese company”.
The timing of the announcement was symbolic of China’s importance for Latin America’s largest economy, he said.
Last month, the Asian superpower surpassed the US as Brazil’s largest trading partner, largely as a result of a near doubling of iron ore shipments to the country.
| Tweet |
