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ShareSao Paulo: ArcelorMittal, the world's largest steelmaker, will partner with mining giant Vale to build a steel mill in southeastern Brazil as part of a plan to spend $5 billion in the South American country, chief executive officer Lakshmi Mittal told daily Valor Economico in an interview published on Thursday.
Mittal, who announced the investments in a meeting in London with Brazil's President Luiz Inacio Lula da Silva, told Valor the steelmaker wanted to boost its presence in the country. ArcelorMittal's Brazil plans come as Vale, its potential partner, endures heavy pressure by Lula to ramp up investments in steel and logistics in the country.
Mittal played down the risk of overcapacity in the steel industry, saying Brazil's future growth prospects require the immediate resumption of investment, according to Valor.
ArcelorMittal fell 2.9% to 23.10 euros on Thursday. Vale''s preferred stock rose for a second day on Wednesday, advancing 1.5% to 41.58 reais -- the highest level since October.
