JSW to set up plant in Texas
The JSW group will invest up to $500 million to set up a million-tonne steel pipe and plates facility in the US state of Texas.
- Published 27.03.18
Mumbai: The JSW group will invest up to $500 million to set up a million-tonne steel pipe and plates facility in the US state of Texas.
JSW Steel (US) Inc, a subsidiary of JSW Steel, on Monday signed a memorandum of co-operation with the governor of Texas to develop and augment the steel industry in that state.
While the investment will be done in phases, the plant will get $3.4 million from the Texas enterprise fund. The new facility is expected to create at least 500 jobs in Texas. The plant will come up at Baytown in the mineral-rich state, which is the largest exporter from the US.
Announcing the investment in the presence of Texas governor Gregory Abbott, Parth Jindal of JSW Group said the memorandum signed was part of its strategy to enhance JSW's US footprint.
"It reiterates our commitment to stay invested and grow in the US market. It also provides JSW with an opportunity to participate in USA's infrastructure development and job creation priorities. Access to natural gas at extremely economical prices and the abundant availability of scrap steel in Texas make conditions very conducive to manufacturing through the electric arc furnace route," he added.
Abbott pointed out that the investment by JSW will not only expand the mill in Baytown but also construct a facility to supply steel to defence and domestic infrastructure projects.
"This investment will strengthen our overall partnership and generate more economic activity in the great state of Texas, creating up to 500 new jobs as well as provide high-quality steel products to our nation," he noted.
JSW had bought the then bankrupt Baytown steel asset for $810 million in October 2007. The units is operating at just about 30 per cent capacity.
JSW USA plans to invest $150 million (already underway) to augment the unit's capabilities. This capex programme is expected to be completed by March 2020. It intends to use the rest of the investment, up to $350 million, to set up a new facility.
The Jindals' US unit meets the demand of a wide ramge of clients.