NEW DELHI: Home-grown JSW Steel on Thursday mentioned its US arm has raised $182 million from two Italian banking establishments to fund modernizing of its plate mill facility in Baytown, US. Its subsidiary JSW Steel (USA) owns and operates one of many largest plate mills of America having an put in capability of greater than 1.2 million tonne every year.
JSW Steel USA has tied-up long-term financing with two Italian banking establishments, Intesa Sanpaolo and Banco BPM, for its plate mill modernisation challenge in Baytown, JSW Steel mentioned in a press release on Thursday.
The capital of $182 million has been raised, the corporate mentioned in a reply to a question on the standing of the transaction.
The complete value of the modernisation challenge is $260 million. The remaining funding shall be via inside accruals, it mentioned.
“Out of the $182 million financing, $70 million is covered under SACE guarantee and the balance $112 million is a term loan… The SACE guarantee is provided with the intention of promoting Italian exports,” JSW Steel mentioned.
In 2007, the JSW group purchased the then bankrupt Baytown metal asset for $810 million.
JSW Steel USA’s plate mill facility positioned at Baytown in Texas is present process a significant modernisation improve.
“Once completed, it will put JSW Steel USA in a position to deliver higher quality products as well as enter new markets. The modernisation will support the requirement of on & offshore wind tower, agriculture, construction, storage tank and surface critical market segments,” it mentioned.
JSW Steel commenced the part II improve of its plate mill facility positioned at Baytown in 2021 and goals to finish it by 2023.