JSW Steel, one of the largest Indian steelmakers, has announced that it has proposed an investment of up to $500 million in acquiring, enhancing and upgrading Acero Junction Inc, an Ohio, US-based integrated steel manufacturing company with a potential capacity of three million mt per year, in two phases.
In the first phase, JSW will revamp and restart the electric arc furnace and the slab caster, and modernize the hot strip mill at the Ohio steel manufacturing facility. The proposed investment including the cost of acquisition is expected to be approximately $250 million.
In the second phase, depending upon the economic viability and prevailing market conditions, JSW will evaluate the possibility of adding another electric arc furnace as well as additional manufacturing equipment at the hot strip mill to make the Ohio facility a fully integrated unit with an annual capacity of three million mt. The proposed investment in the second phase could be in the range of up to $250 million, subject to feasibility studies and necessary approvals.
The company stated that the integrated steel manufacturing unit in Ohio has been acquired as part of the recently concluded Acero Junction Holdings Inc deal.
These investments will take JSW’s overall investment blueprint for the US market, to produce American melt and manufactured steel, to up to $1 billion.