Major Brazilian orders for Outokumpu Technology

Outokumpu Technology has won a large iron ore pelletizing plant order from Mineraçôes Brasileiras Reunidas (MBR). It will deliver process equipment for a pelletizing plant to be built in Nova Lima, Minas Gerais, Brazil. The contract value exceeds €110 million. This deal is continuation to the engineering contract the companies announced in March 2006.

Outokumpu Technology’s delivery will include two complete equipment packages, one for a pellet indurating furnace and the other for a green pelletizing system. Once operational, scheduled in mid-2008, the plant will produce 7 Mt/y of iron ore pellets. Outokumpu Technology will source the majority of the equipment for the project
locally in Brazil.

Brazil’s CVRD is the majority owner of MBR. The pelletizing plant is part of MBR’s Itabiritos Project, a $760 million investment, which, in addition to the pelletizing plant, includes a new 10 Mt/y iron ore concentrator and a 5 km pipeline (IM, December 2005).

“The majority of the world’s iron ore pelletizing plants are built by Outokumpu Technology. The new MBR plant will already be the 12th pelletizing plant in Brazil using our traveling grate process. This deal demonstrates our reliability and technological leadership in new investments in the mining and metals industries", says Tapani Järvinen, President & CEO of Outokumpu Technology.

The company has also signed a significant contract with Brazilian iron ore producer ThyssenKrupp CSA Companhia Siderúrgica (CSA) for the design and delivery of a sinter plant for CSA. The total value of the contract amounts to €160 million, of which some €90 million will be recognized as sales of Outokumpu Technology.

Outokumpu Technology’s scope covers the entire engineering, supply of process equipment, construction and start-up of the turnkey sinter plant, which CSA plans to build in connection with its greenfield steel plant in Sepetiba, Rio de Janeiro. The design capacity of the sinter plant will be 4.4 Mt/y of sinter and it is scheduled to start operation in 2009. Approximately 65% of the contracted services and supplies will be sourced locally in Brazil and the customer will pay directly part of those services to local sub-suppliers. Consequently the sales value of the project to be through Outokumpu Technology’s books will be lower than the total contract value.

"This significant project will have a similar scope and size as the Samarco project, the world’s largest pellet indurating furnace that Outokumpu Technology is currently building in Brazil. We have also announced the contract for the MBR pelletizing plant, which, as well as CSA, will be the largest plant of its kind in the world. These three significant Brazilian projects clearly demonstrate our market leadership in iron ore processing technologies", says Järvinen