Indian steelmaker JSW Steel has announced that it will likely shut down the plate plant at its Texas Works facility in Baytown, Texas, which is currently running on a very limited basis due to the slumping US demand.
The Texas plant is currently operating at only about 10 to 15 percent of its capacity. The plant has an annual capacity of 1.2 million mt.
JSW's joint managing director and group chief financial officer, Seshagiri Rao, explained to reporters at a steel conference, "Demand in industries such as ship building is not good, which is why we are looking at shutting the plant." He said the decision of whether to close the plant would be made by the end of May.
Rao said that the company already has enough stock to feed its US pipe mill, and if supplies run out it can turn to the US domestic plate market.
Furthermore, Rao said that he expects JSW to close all of its US plants for about three months beginning in June, though the company will maintain the upkeep and modernization of the facilities in the interim.
The company announced last week that it is not planning on selling any of its US plants, contrary to rumors.
JSW, which entered the US market in 2007 with its acquisition of pipe and plate mills, posted a consolidated net loss of US$8.3 million during the first quarter, compared to a $75 million net profit during the same period last year.