JSW Texas
ET
India
28-10-2022
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JSW Steel's US unit raised $182 million long-term debt from Italy's Intesa Sanpaolo and Banco BPM to upgrade its plate mill in Baytown, Texas.
About $100 million of the equipment like cutting line, rolling mill, grinding machine and water treatment system for upgrading the facility will be supplied by three Italian firms.
JSW Steel said in a statement Thursday that out of the total financing, $70 million is covered under SACE guarantee provided by the Italian government with the intention of promoting Italian exports. The rest of the capital is a term loan.JSW Steel has significant operations in the USA and Italy.
The investment announcement comes at a time when the World Steel Association predicted steel demand in the US won't contract during the year contrary to other major consumers.
Last quarter, JSW Steel's plate and pipe mill in the US reported earnings before interest, tax, depreciation and amortisation (EBITDA) of $25 million, up 88% year-on-year, but down sequentially. However, the company's Ohio unit reported a $40-million EBITDA loss after sales halved.