Transpetro, a subsidiary of Brazil's state-owned oil and gas giant Petrobras, announced that it will hold an international public bidding in December to purchase steel.

    Director of Maritime Transportation Department Agenor Junqueira said the entire process is expected to be finished in January 2008,which will allow Transpetro, with no further delay, to build 19 cargo ships.

    Junqueira said the purchase of 400,000 tons of steel will not disturb the schedule set for the first stage of the plan for the modernization and expansion of the company's fleet, which includes the construction of 26 ships.

    Four of the contracts for the projects already bid will be signed on Friday in the municipality of Niteroi, Rio's metropolitan region, where shipyard Maua-Jurong is located. Brazilian President Luiz Inacio Lula da Silva is expected to attend the ceremony.

    The signature of the contracts for the construction of three other ships still awaits the concession of credits from the state-owned National Economic and Social Development Bank.

    Transpetro and local shipyards accused Brazil's steel-making industry of charging abusive prices for naval steel, which led the subsidiary to hold the international bidding.

    The company hopes to build 16 other ships in the second stage of the plan.