POSCO (KSE:005490), South Korea's leading steelmaker, said Friday it plans to join its smaller local rival Dongkuk Steel Mill Co.'s (KSE:001230), project to build a steel plant in Brazil.
POSCO said it will buy a 20 per cent stake in the project. Details such as the conditions for investment will be decided on later, it said.
Dongkuk Steel, South Korea's third-largest steelmaker, is seeking a project to build a steel plant with an annual capacity of 3 million tonnes together with Brazil's Vale SA, the world's biggest iron-ore producer.
Dongkuk Steel and Vale are set to start construction of the plant next year, and plan to complete the project by 2014.
The plant will be built in the northeastern state of Ceara in the South American country. The cost of the project could reach 2 trillion won (US$1.6 billion), Dongkuk Steel said earlier. 
