JSW Steel Signs MoU To Set Up Steel Plant In North America
JSW Steel (US) Inc, a subsidiary of JSW Steel Limited India's leading steel producer, and Office of Governor, Texas USA, signed a Memorandum of Cooperation to develop and augment the steel industry in Texas. According to the Memorandum between Parth Jindal of JSW Group and Greg Abbott, Governor of Texas in partnership with Texas Enterprise Fund, JSW Steel (USA) Inc has agreed to consider investment of up to US$ 500 million in phases (subject to EPA approval) in developing its steel manufacturing infrastructure in Baytown, Texas USA. As part of this Memorandum, Governor Greg Abbott has also approved US$3.4 million grant from the Texas Enterprise Fund to the Company.
Commenting on the Memorandum of Cooperation entered by JSW, Mr Parth Jindal of JSW Group said, "The Memorandum signed by Greg Abbott and JSW USA is part of our long-term strategy to enhance our US footprint. It reiterates our commitment to stay invested and grow in the US market. It also provides JSW USA 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 for manufacturing through the Electric Arc Furnace route. JSW Steel (USA) Inc wish to create a world-class fully integrated steel complex that will bring precision manufacturing of high-quality steel plate and pipe to Texas, USA."
"JSW's motto is 'Better every day,' and that's the same approach we take in Texas," said Governor Abbott, "The $500 million investment from JSW Steel to expand its operations in Texas shows what we can achieve when we work to be better every single day. Made in Texas is a powerful label, and I thank JSW for investing in our great State. We look forward to forging an even stronger partnership and continuing economic and job growth in the Lone Star State
"The intended investment by JSW USA will be used to undertake capability enhancement of its Plate & Pipe Mill unit located in Baytown, Texas USA. The company will invest US$ 150 million (already underway) to augment the unit's capabilities. This capex programme is expected to be completed by March 2020. JSW USA intends to use rest of the investment, up to US$ 350 million, to set-up a new hot end facility to make their steel 'melt and manufacture' (subject to approvals).
JSW USA operates one of the widest steel plate & pipe mills in North America. Strategically located in Baytown, Texas, approximately 30 miles outside Houston, the unit services the needs of the energy, petrochemicals, defence and other heavy equipment industries in the USA who need high-quality carbon plate.