Dongkuk Steel mulls scrapping plan for Brazil steel plant

SEOUL, Dec. 31 (Yonhap) -- Dongkuk Steel Mill Co., South Korea's third-largest
steelmaker, said Wednesday it will review its US$2 billion steel plant
construction project in Brazil due to conflicts of interest among investors and
drastic changes in the business environment.

In September, Dongkuk said it would start construction of the plant along with
Cia. Vale do Rio Doce -- the world's biggest iron ore producer -- and other
business partners in the Brazilian state of Ceara during the first half of next
year.
If completed in 2010, the plant will have an initial production capacity of 2.5
million to 3 million tons of steel, the South Korean steelmaker said.
sam@yna.co.kr
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