Brazilian mining company Companhia Vale do Rio Doce (CVRD) announced on Monday the signing of an accord with Norway's Hydro company to build a new alumina production company in Brazil's northern state of Para.

The new industrial alumina plant will be built in the municipality of Barcarena, and construction work will begin in 2008.

Hydro will hold 20 percent of shares in the joint venture.

The project will include four units and is expected to have an annual production capacity of 7.4 million tons of alumina annually.