Cvrd Goes To ChinaPublished by MAC on 2006-09-29
Source: Forbes Magazine
CVRD Goes To China
R.M. Schneiderman, Forbes Magazine
29th September 2006
Shares of Companhia Vale do Rio Doce rose during Friday trading, after the Brazilian mining giant said that it's making its first investment in iron ore in China.
CVRD said Thursday that it will invest $4 million and receive a 25% stake in Zhuhai YPM, the owner of a new iron ore pelletizing plant in Zhuhai, Guangdong, China. CVRD will make the investment through its subsidiary, Mineracoes Brasileiras Reunidas.
The other partners in the joint venture are Zhuhai Yueyufeng Iron and Steel with a 40% stake, and Pioneer Iron & Steel Group with a 35% stake. When the plant begins production, likely in 2008, CVRD will supply at least 70% of its iron ore over the next thirty years.
In a press release, the company said the move "illustrates CVRD's strategy to support the development of the steel industry, especially in the field of palletizing in which CVRD is already a market leader." In Friday trading, shares of CVRD rose 23 cents to $21.56.