Jan. 17. 2003
Marubeni Corporation (Marubeni) and Kawasaki Heavy Industries, Ltd. (Kawasaki) have jointly concluded a contract to construct a LD gas recovery system (revamping of existing dust deducting system in steel making shop and installation of new gas holder) with Companhia Siderurgica de Tubarao (CST: head office; Vitoria, president; Jose Armando de Figueiredo Campos), a private steel maker in Espirito Santo State, Brazil. The total amount of the contact is approximately \ 3 billions, and it is to be constructed at the company's Tubarao Steelworks.
The ordered system is designed to collect and clean up off-gas generated in steel making shop and store it in gas holder as fuel of their new power station system.
In accordance with increasing of demand for power because of start up of its hot rolling mill operation, a new power generation system has become necessary. Among main steelworks in Brazil, it is only Tubarao Steelworks that can secure all of necessary power by independent power generation. In Brazil, a country where power supply is not stable, this is an advantage to compete with other steel makers.
Companhia Siderurgica de Tubarao capable of producing five million tons of crude steel annually is the largest steel maker in Brazil with investments from ARCELOR of France, Companhia Vale de Rio Doce (CVRD) of Brazil, Kawasaki Steel Corporation, etc.
In the competition with major European engineering and manufacturing companies such SMS, VAI for this system, we succeeded in receiving the order because of Kawasaki's excellent technology and accumulated experience for steel making shop area over the world including in Brazil, with such as CSN, USIMINAS and COSIPA for steel making shop as well as arrangement of competitive finance facility provided by Japan Bank for International Cooperation (JBIC).
It is the first transaction for JBIC to provide the finance facility in form of buyer's credit facility directly to Brazilian steel mills without any guarantee from third parties such local banks or governmental body. JBIC evaluated CST's financial capability because CST is one of major export oriented company in Brazil. CST exports approximately 5.0 million tons per year of steel slab over the world.
Tubarao Steelworks is also planning to make a large-scale equipment investment to increase its production capacity further. With this order as a momentum, therefore, we will try harder to receive more orders.