The Indian steelmaker JSW Steel has commissioned its new 175,000 mt per year capacity rebar mill, GeoSteel, in the southeastern Georgian city of Rustavi.
In order to meet constructions steel demand in Georgia and also in neighboring Armenia and Azerbaijan, the new mill will focus on the production of rebar, which will be produced by the hot rolling of steel billets manufactured through the electric arc furnace route.
GeoSteel, which is a joint venture (JV) between Georgian Steel Holding Group and JSW Steel, plans to increase its production gradually to a level of about 180,000 mt in line with the development of market demand.
According to JSW Steel, the total investments in the new mill amounted to $60 million. In October 2008, the European Bank for Reconstruction and Development provided a $28 million loan to GeoSteel for the construction and operation of the new mill.
"We are seriously considering expanding our business opportunities in Georgia," JSW Steel managing director Sajjan Jindal stated, adding that the company also plans to invest in the oil sector in eastern Georgia and in hydropower stations.
In addition, according to reports, another steel giant, Luxembourg-based ArcelorMittal, is also preparing to make an investment in Georgia. Accordingly, ArcelorMittal's proposed Georgian subsidiary would be managed by representatives of its Ukrainian subsidiary ArcelorMittal Kriviy Rih. The details of ArcelorMittal's activity in Georgia are to be disclosed in the very near future.