Indian steelmaker JSW Steel Ltd (JSW) has halved the workforce at its Baytown, Texas-based US operations due to a slump in the oil and gas industry in the region.
JSW Steel's joint managing director and group CFO Seshagiri RaoSeshagiri Rao told the media, "About 40-50 percent of the jobs at our units in the US have been cut in the last two quarters to bring the workforce in line with the capacity utilization of the mills."
In 2007 JSW Steel bought the three mills (a plate mill, pipe mill and coating lines) at the Texas location at a cost of $940 million. The plants have an annual production capacity of 1.2 million mt of plates and 0.5 million mt of pipes.
Mr Rao added, "We have no plans to sell our US pipe and plate mills even if they are operating at only 10-15 percent of their production capacity amid waning demand on account of the economic crisis. Looking at our forward integration, it is a right strategic fit for the company in the long run."