ThyssenKrupp Brazil steel plant delayed again-paper

FRANKFURT, July 8 (Reuters) - Germany's largest steelmaker, ThyssenKrupp (TKAG.DE), will have to delay again the start-up of a coking plant in its new Brazilian steel plant, this time due to massive quality problems, a German newspaper reported on Wednesday, citing company sources.

The coking plant was due to start operations in August but this schedule could no longer be met, Handelsblatt said. The problems in the coking plant could have repercussions on the production start of the steel blast furnace, which was scheduled for end-2009, it added.

A spokesman for the company was not immediately available for comment.

ThyssenKrupp shares fell 0.9 percent by 0931 GMT, lagging an 0.1 percent dip in the German blue-chip index .GDAXI.

ThyssenKrupp has incurred cost overruns in the Brazilian plant, with the original 3 billion euros ($4.19 billion) budget raised last year to around 4.5 billion just before a worldwide recession set in and steel demand shrank.

The new steel mill in Santa Cruz in the state of Rio de Janeiro is to produce 5 million metric tonnes annually to underpin the company's ambitious growth strategies in Europe and North America.

The company said in September the start-up of the port terminal, coke plant and power plant in the new Brazilian mill could be expected in the first quarter of 2009.

It said then the original schedule of the core units -- blast furnaces and melt shops -- could not be met due to supply bottlenecks and adverse weather conditions, and had said the production start would not take place until late 2009. ($1=.7154 Euro) (Reporting by Marilyn Gerlach; Editing by Jon Loades-Carter)