China on course to become biggest foreign direct investor in Brazil

Thursday, August 12th 2010 - 04:05 UTC

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Steel, iron ore, oil, auto industry, electricity and land for soybeans figure in the long list

China's direct investment in Brazil has surged, putting China on course to be the biggest foreign direct investor in Latin America's largest economy this year.

Following are some of the major deals that have been announced compiled by Reuters:

* Wuhan Iron and Steel Co is investing up to $5 billion to build a steel mill in northern Rio de Janeiro state. It previously paid $400 million for a stake in Brazilian mining firm MMX (MMXM3.SA).

* China's Sinochem Corp won the bidding for a $3 billion stake in a Statoil offshore Brazilian oil field.

* East China Mineral Exploration and Development Bureau agreed in March to pay $1.2 billion for Brazilian iron ore miner Itaminas Comercio de Minerios.

* State Grid, China's biggest electrical utility, agreed to pay $1.7 billion for seven Brazilian electricity transmission companies.

* Automaker Chery Automobile Co. will invest about $700 million to build its first production plant in Brazil, according to media reports.

* Chinese investment group Honbridge Holdings bought an iron ore mining firm in Minas Gerais state for $390 million from Brazilian firm Votorantim.

* Construction machinery maker Sany Heavy Industry (600031.SS) is spending $200 million to build a plant in Sao Paulo.

* Chinese state firm Chongqing Grain Group is seeking to invest $300 million to buy 100,000 hectares of land in the north-eastern state of Bahia to cultivate soy.

* China agreed last year to lend $10 billion to Brazil's Petrobras (PETR4.SA) (PBR.N) in return for guaranteed oil supply over the next decade.

Categories: Economy, Investments, Brazil.

Tags: Brazil, China.

Top Comments

Disclaimer & comment rules

Forgetit87
The president has already announced a bill to preclude foreign entities - governments, companies, etc. - from owning lands in Brazil. I don't know ehen the bill will be voted, but I'm sure it will pass. China will buy no land from us.
Aug 12th, 2010 - 06:20 am 0
harrier61
Interesting that China wants to use Brazilian land to cultivate soy rather than buy it from Argentina. It will be interesting to see whether the Chinese will go ahead with some of these proposals if they don't get to own the land they would be built on. And if they can't buy the land to cultivate soy, will they go ahead with any of them?
Aug 12th, 2010 - 11:10 pm 0
JoseAngeldeMonterrey
China is grabbing many natural and mineral resources in Brazil, in order to transform them and make more manufactured products to sell in the U.S., and in Brazil too.
Aug 19th, 2010 - 02:55 am 0

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