A Newly formed Chinese investment company intends to build an 8 million tonnes/year steel mill in Brazil for flat rolled steel under China’s “Belt & Road” Initiative (BRI), a company Official has confirmed.

Though the feasibility study for the project has yet to be completed, its backers aim to commission the plant in 2025.

The Beijing-based asset management company Easteel International Trading Group Co plans to invest a total of $20 billion over 2018-2025 to build the blast furnace-based steel mill, one of several huge industrial projects to be located in Camaçari city in North-east Brazil’s Bahia State. Easteel and the Bahia state government signed an agreement on May 13.

Though planning for the project is yet to be completed, preliminary plans call for construction to start in May 2022, with the first phase of the steel plant hosting a capacity of 3 million t/y of steel products, comprising 2 million t/y of hot-rolled coils and 1 million t/y of silicon sheet, the company official said. When the feasibility study will be completed remains unclear.

Besides the steel plant, the Chinese company also plans to build a 1300MW natural gas-fired power plant, a 5 million t/y cement plant and a smart city that could accommodate 150,000 people.

The cement plant will utilise the steel works’ blast furnace slag, reducing pollutant emissions and contributing to the local building material industry. Moreover, the smart city will be built to provide a pleasant environment for employees working in the industrial park, the documents maintained.

Easteel, founded in February 2018, is a transnational investment company with mixed ownership. The documents say the firm aims to “unite” many investment and financing institutions including state-owned China Development Bank, China National Machinery Industry Co and China Aerospace Science and Technology Co.

A recent post on China’s official Xinhua News Agency specially covering news related to the “Belt & Road” initiative quotes Easteel as saying that this project, with steel production as the core business, will help promote Bahia’s economy and local people’s livelihood. The project planned for Bahai will be one of many Easteel is going to launch in BRI countries, the company official disclosed.