India's fourth-biggest steelmaker, JSW Steel Ltd., plans to buy a steel plate mill in the US for $1.2 billion. According to the company's managing director Sajjan Jindal, the acquisition in question is expected to allow JSW Steel to ship steel slabs to the US for the manufacture of products used in shipbuilding and by energy companies.
Furthermore, JSW Steel is to more than double its slab-making capacity to 10 million tons by 2010. The company is also building a hot strip mill with an annual capacity of three million mt to convert slabs into high-end steel products for automobile and home appliance makers.
Company MD Mr. Jindal said that costs at the US plant could be significantly lowered if they shipped the steel from India and added value there. However, no detailed information was given concerning the planned US investment.