Capital market-relevant press releases, 2009-07-23, 07:02 AM
Vale and ThyssenKrupp sign Memorandum of Understanding
The Brazilian Vale S.A. (Vale) and ThyssenKrupp Steel AG have signed yesterday evening a Memorandum of Understanding that Vale will increase its stake in ThyssenKrupp CSA Siderúrgica do Atlântico Ltda. (CSA) to 26.87%, from its current 10% interest, through a capital infusion of € 965 million. This decision is still subject to, among other conditions, the approval of the Board of Directors of Vale and Supervisory Boards of ThyssenKrupp.
CSA is building an integrated steel slab plant, with nominal capacity of five million metric tons of slab per year, in the state of Rio de Janeiro, Brazil. The currently expected start-up is the first half of 2010. As a strategic partner of ThyssenKrupp, Vale is the sole and exclusive supplier of iron ore to CSA.
Through this additional capital contribution, Vale confirms its engagement in the largest industrial investment under construction in Brazil in the last ten years and the first large steel mill built in the country since the mid-eighties, providing a strong support to the project completion.
This press release is also to be found under www.thyssenkrupp-steel.de