(MENAFN) China's No.4 steelmaker Wuhan Iron and Steel Group, decided to scrap plans to set up a steel mill in Brazil after negotiations on infrastructure investment failed, Reuters reported.
Deng Qilin, President of Wuhan, said the company's Brazilian partners had failed to provide the necessary conditions for Wuhan Iron and Steel to invest.
Deng added that due to the ongoing difficulties facing the global steel sector, Wugang would no longer consider any other overseas steel mill investments, with the market already too crowded and profits too low.
Earlier this month, the Brazilian partners, LLX Logistica SA, said that talks on the steel project at the port of Acu were now "dormant" and that the two sides had not met for months.
Wuhan currently produces 10 million metric tons a year from overseas operations, and its 60 million-metric ton target would take more than five years to achieve, Deng said.
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