MUMBAI: Sajjan Jindal-led JSW Steel is planning to invest up to $ 500 million in acquiring, enhancing and upgrading Acero Junction Inc, an integrated steel manufacturing unit with a potential capacity of 3 million tonnes per annum, located at Ohio USA, in phases.
"This takes JSW’s overall investment blueprint for the U.S. market, to produce American melt and manufactured steel, to up to $ 1 billion. The proposed investment will be made in two phases at its Ohio steel manufacturing facility," said a company statement.
In first phase, JSW will revamp and restart the electric arc furnace and the slab caster, and modernize the hot strip mill with an investment of $250 million.
In the second phase, depending upon the economic viability and prevailing market conditions, JSW will evaluate the possibility of adding another electric arc furnace as well as an additional manufacturing equipment at the hot strip mill to make the Ohio facility a fully integrated unit.
The proposed investment in Phase 2 could be in the range of up to $250 million, subject to feasibility studies and necessary approvals, said the statement.
The integrated steel manufacturing unit in Ohio, with a potential capacity of 3 MTPA, was acquired as part of the recently concluded Acero Junction Holdings Inc deal.
A certificate evidencing the proposed investments by JSW Steel was signed by Wilbur Ross, Secretary, U.S. Department of Commerce, and Jayant Acharya, board member and director (commercial & marketing), JSW Steel Ltd., at SelectUSA Investment Summit held at the National Harbor, Maryland, outside Washington, D.C.
Commenting on the investments, Parth Jindal, director - JSW Steel (USA) Inc, said, “JSW is pleased to share its intention for additional investments in the U.S. market. It is our fundamental belief that due to the rich availability of scrap metal and abundance of natural gas, making steel through EAF route is highly competitive in the U.S. from a global standpoint. Over the past few months, we have announced the backward integration of our plate and pipe mill in Baytown, Texas.”
The proposed investment by JSW Steel follows the memorandum signed by JSW Steel (USA) Inc in March 2018 to consider an investment of up to $ 500 million for expanding its operations in Texas.
