JSW steel plans to invest $500 million to buy, upgrade US firm Acero
25 June 2018
JSW SteelNSE has said it proposes an investment of up to $500 million in acquiring, enhancing and upgrading Acero Junction Inc, an integrated steel manufacturing unit with a potential capacity of 3 million tonne per annum (mtpa), located at Ohio in the US.
The company had in March announced plans to pump in $500 million to modernise its steel plate and pie unit at Baytown, Texas. The latest announcement thus takes JSW’s overall investment in the US market to $ 1billion. The proposed investment will be made in two phases at its Ohio steel manufacturing facility, an official statement on Friday said.
In phase one, JSW will revamp & restart the electric arc furnace and the slab caster, and modernise the hot strip mill. The proposed investment including the cost of acquisition, is expected to be approximately $250 million. In phase two, depending upon the economic viability & prevailing market conditions, JSW said it will evaluate the possibility of adding another electric arc furnace (EAF) at the hot strip mill to make the Ohio facility a fully integrated unit with 3 mtpa capacity.
The proposed investment in phase two could be in the range of up to $250 million, it added.
Parth Jindal, director, JSW Steel (USA) Inc said: “JSW is pleased to share its intention for additional investments in the US market.
Rich availability of scrap metal and abundance of natgas, making steel through EAF route is highly competitive in the US from a global standpoint.”