Essar Steel To Invest Rs.20000 Cr In Brazil
Gujarat based Essar is looking to set up the new plant for the capacity of 6 ml ton a year slab making unit in the Brazil for the cost about Rs.20000 Crores. Brazil is the fastest growing market for the steel. Last year around 2.5 million cars were sold in Brazil, up 28 per cent year-on-year.
According to the reports, the company may also soon make the slabs and eventually go for finished products such as hot-rolled and cold-rolled coils to feed the growing market.
All steel major companies of the country such as CSN USIMINAS and ArcelorMittal have integrated plants and most of the surplus slab has to be exported to Asia and Europe, incurring large logistics costs.
Essar has also applied for iron ore mines in Brazil, which has about three times the commodity's reserves than India. The company intends to use the extract from these mines for its proposed plants in Brazil and in Trinidad and Tobago, where it plans to start construction in three months.