JSW Steel to invest up to USD 500 million in Texas
27 March 2018
Amid the incoming US import tariffs on steel and aluminum, homegrown JSW Steel, on Monday said its US unit will invest up to $500 million to expand its Texas operations.JSW Steel (US) Inc, a subsidiary of India’s leading steel producer JSW Steel Ltd will invest in phases to develop its steel manufacturing infrastructure in Baytown, Texas. An agreement was signed between JSW and Texas Governor’s office, which also approved a grant worth $3.4 million from the Texas Enterprise Fund to JSW Steel (USA) Inc, the steelmaker said in a statement. The agreement is in line with US government’s programme and priorities on infrastructure development and job creation, it added.
Of the $500 million, $150 million (already underway) will augment the unit’s capabilities, while the remaining $350 million will be used to set up a new hot-end facility to make their steel melt and manufacture facility, subject to approvals. The capex programme is expected to be completed by March, 2020.
“The $500 million investment from JSW Steel to expand its operations in Texas shows what we can achieve when we work to be better every single day,” said Greg Abbott, Texas Governor. The investment, subject environmental protection approvals, facilitates expansion, and the funds will be used for backward integration, to create the first melt and manufacture and enhance capability of its contiguous plate and pipe facility.
“JSW Steel wish to create a world-class fully integrated complex that will bring precision manufacturing of high quality steel plate and pipe to Texas, USA,” said Parth Jindal of JSW Steel.JSW USA operates one of the widest steel plate and pipe mills in North America and services the needs of energy, petrochemicals, defence in USA who need high quality carbon plate.