Vale to invest as much as $250 mln in slab producer CSP over three years

Vale might invest as much as $250 million in Brazilian slab producer Companhia Siderúrgica do Pecém (CSP) over the next three years, to improve the steelmaker’s balance sheet, the miner told Fastmarkets on Tuesday May 15.

Despite recording an operating profit recently, CSP faces erosion of its capital, mostly because of the need to pay interest expenses and the depreciation of the Brazilian Real compared with the dollar, South Korean steelmaker Posco said on April 26. Posco is a 20% partner in the CSP joint venture with Vale, which owns 50% of CSP’s shares, and Dongkuk Steel, which owns 30%. The three have been discussing a capital increase because the Brazilian slab producer has accumulated losses in recent years. Each company would contribute to the capital increase according to its stake in...

Published

Renato Rostás

May 15, 2019

18:00 GMT

São Paulo