The Brazilian National Development Bank (BNDES) announced that it will support the steel company Companhia Siderúrgica do Pecém (CSP) with 2.3 billion real (USD 800 million) in order to build a plant at the Pecém Industrial Port Complex (CIPP) in Săo Gonçalo do Amarante which is located just 8 km away from to the Port of Pecém (see also measure no. 5846 under Related Measures).
The company CSP was formed by Brazilian Vale and South Korea's Dongkuk and Posco. According to CSP, the plant will be operable in the first half of 2016 and have a production capacity 3 million tons of steel slabs per year. All of its production is destined for exportation.
Besides this, CSP will be the first company to start its production within the ZPE at the Pecém Industrial Port Complex. A ZPE constitutes a free trade zone whose revenues are required to originate from at least 80% of exports.
The measure is considered discriminatory since, in general, the Brazilian Development Bank provides credits with below-market interest rates only to legal persons (private or public) based in Brazil.