Chinese steel suspending at the port of Açu, Eike, by lack of infrastructure


Chinese steel suspending at the port of Açu, Eike, by lack of infrastructure

Partner of Eike Batista in mining company MMX, the State-owned Chinese steelmaker Wuhan Iron and Steel Corporation (Wisco) has filed its participation in the Açu port steel complex, claiming that the Brazilian side not built the necessary infrastructure for the project.
“Railways, port terminals–they haven’t built anything. The market also is not there, so we stopped the talks right now and we’re not thinking about it, “said on Sunday the President of Wuhan, Deng Qilin, the Reuters news agency.
In 2010, the Wisco, fourth largest producer China Steel, the steel complex has started negotiating with LLX, EBX Group company, Eike Batista. The project was estimated at the time at $ 5 billion.
At the end of the previous year, the Chinese Government had bought 21.52% of the mining company MMX for $ 400 million.
The Chinese steel sector faces a turbulent year due to the slowdown of the economy in the world and in China, causing an overproduction, falling prices and rising debts.
“This is the most difficult year for the Chinese steel sector because the whole world economy has weakened, and the Chinese growth has slowed down and is undergoing a restructuring,” said Deng.
He said that the company does not plan to build any overseas steel, but remains interested in buying iron ore mines and coal out of China to fuel its steel industry.
LLX’s advice, the logistics arm of the EBX Group, Eike Batista, and responsible for the construction of the port of Açu, reported that the company was not consulted about the statements by the President of Wuhan, Deng Qilin.
But in an exclusive interview to foliage, on October 19, the entrepreneur said that the profile of the port had changed and that the project was turning into a polo for the offshore industry.
Initially, the Açu port would have two steel plants: the Wisco and another from Térnium, one of the original anchors of the project. As well as the Chinese, the Térnium have not yet left the paper. Instead of steel, according to Batista, oil exploration companies are settling in the region of porto.
Have already signed contracts to install itself in the Açu port companies NOV (National Oilwell Varco), Intermoor, Technip and Subsea7, all petroleum sector. According to Eike, Technip is investing $ 600 million in building a factory in Acu; the NOV, r $ 400 million.
“Screw the steel company. My shopping has changed. There is a complex on this scale to serve the oil industry. Then, by golly, it was designed as a port for iron ore and look what turned. I now have a clientele that pays me three times more by the square metre. Only these people have already paid $ 100 million for rent, before the port work. It was a deal nobler and that nobody talks about, “said the businessman.

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