BRASILIA – A subsidiary of Brazilian conglomerate EBX, controlled by magnate Eike Batista, and China’s Wuhan Iron and Steel Corporation signed an agreement Thursday to build a $5 billion steel complex in Rio de Janeiro state.

The accord signed on Thursday coincided with a meeting between Chinese President Hu Jintao and Brazilian counterpart Luis Inacio Lula da Silva.

After the meeting, Lula said in a speech that this project will represent “China’s largest-ever investment in Brazil” and the biggest investment in the steel industry by the Asian giant outside its borders.

Batista told reporters that his LLX Logistica company will put up 30 percent of the capital and that his Chinese partner will provide the remaining 70 percent for the steel factory, which will be built in the southeastern town of Sao Joao da Barra, in Rio de Janeiro state.

According to the companies’ projections, the mill will come online in 2012 and have the capacity to produce 5 million tons of steel annually.