India's largest private sector steelmaker JSW Steel is planning to double production from its subsidiaries in the US in line with reviving demand.
According to JSW Group's CFO Seshagiri Rao, currently utilizing 15 percent of its 1.7 million mt annual production capacity in the US, JSW Steel will be running at 30 percent capacity within three months as the market is recovering slowly.
"During the economic downturn, we decided to cut production. But the scene in the US is now quite better. If it keeps improving like this, production will be at full capacity by early next year," Mr. Rao told the press.
As SteelOrbis previously reported, JSW Steel indicated on May 19 that its Baytown, Texas-based plate plant could be closed down for three months starting June and that upgrading and maintenance work would be carried out in the interim period. Previously, the company had almost halved its workforce in the US to remain competitive during the downturn.
In 2007 JSW Steel bought three mills (a plate mill, pipe mill and coating lines) at the Texas location at a cost of $940 million, totaling an annual production capacity of 1.2 million mt of plates and 0.5 million mt of pipes.