JSW Steel's US arm raises $182m to fund Baytown plate mill modernisation
JSW Steel on Thursday said its American arm has raised $182 million from two Italian banking institutions to fund the modernising of its plate mill facility in Baytown, US.
Its subsidiary JSW Steel (USA) owns and operates one of the largest plate mills in the US having an installed capacity of more than 1.2 million tonne per annum.
JSW Steel USA has tied-up long-term financing with two Italian banking institutions, Intesa Sanpaolo and Banco BPM.
The capital of $182 million has been raised, the company said in a reply to a query on the status of the transaction.
The total cost of the modernisation project is $260 million. The remaining funding will be through internal accruals, it said.
“Out of the $182 million financing, $70 million is covered under SACE guarantee and the balance $112 million is a term loan... The SACE guarantee is provided with the intention of promoting Italian exports,” JSW Steel said.
In 2007, the JSW group bought the then-bankrupt Baytown steel asset for $810 million. JSW Steel USA’s plate mill facility is undergoing a major upgrade.
“Once completed, it will put JSW Steel USA in a position to deliver higher quality products as well as enter new markets. The modernisation will support the requirement of on- and offshore wind tower, agriculture and construction,” it said.