JSW has said it proposes an investment of upto US$ 500 million in acquiring, enhancing & 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 $500 million to modernise its Texas unit. The latest announcement thus takes JSW’s overall investment blueprint for the US market, to produce American melt and manufactured steel, to up to US$ 1 billion. 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 modernize the hot strip mill. The proposed investment including the cost of acquisition, is expected to be approximately US$250 million. In phase two, depending upon the economic viability & prevailing market conditions, JSW will evaluate the possibility of adding another electric arc furnace as well as additional manufacturing equipment 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 US$250 million, subject to feasibility studies & necessary approvals.
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, US Dept 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.
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 natural gas, making steel through EAF route is highly competitive in USA from a global standpoint."
Source: The Economic Times
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