A group of US investment funds is finalising the partnership with Brazil’s Companhia Siderurgica Nacional (CSN) for setting up a 2Mt cement plant in the midwestern state of Mato Grosso.
There are also plans for establishing three other such cement units in the Southeast and North. The funds intend to sell a majority stake to a local partner.
The other possible partners are Brazilian cement producers such as Votorantim and Camargo Correa, and Cemex from Mexico.
The new cement company will be called BRC Cimento.
If only a minority stake is sold, BRC Cimento will launch an IPO in up to 18 months in so as to raise R$1.8 bn. The proceeds of the IPO would be used to finance the construction of the three other plants.
BRC Cimento’s four units will produce 8Mta.