JSW Steel USA to invest $110 million to upgrade manufacturing operations in Texas

JSW Steel on Tuesday, June 25, said its US-based subsidiary will invest $110 million to modernise its steel plate mill at Baytown, in Texas.

This initiative, unveiled at the 10th Select USA Investment Summit, hosted by the US Department of Commerce in National Harbor, Maryland, aims to integrate sustainable technology and state-of-the-art equipment into the facility.

The modernisation project will boost JSW Steel USA's ability to produce high-quality monopile steel plates, a critical component in supporting the US administration's goal to expand offshore wind energy, the company said in a stock exchange filing on June 25. Shares of JSW Steel Lt traded flat, gaining 0.4% to a high of Rs 938.55 on BSE during the early morning trade on Tuesday.

The US aims to deploy 30 gigawatts (GW) of offshore wind energy by 2030, sufficient to power 10 million homes with clean energy. The upgraded facility will align with Buy America's requirements, providing specialised steel products for hydrocarbon pipelines, offshore wind towers, high-density pressure vessels, and other sophisticated applications.

"By supplying critical high-grade steel products for US offshore wind deployment, we are committed to a cleaner, greener, and better tomorrow. This investment is a testament to the strong relationship between the US and India in this critical industry," Rob Simon, CEO of JSW Steel USA, said.

These upgrades support the company's long-term ESG initiatives and contribute to the decarbonisation of the US energy sector, the company's management added.

Through these investments, JSW USA will enhance its domestic manufacturing capabilities, insourcing the production of American-made steel slabs from its Mingo Junction, Ohio facility.

This move will also bolster the domestic renewable energy market by increasing JSW USA’s service capacity in the offshore wind market. The Baytown project builds on JSW USA’s recent USD 145 million investment in Mingo Junction to upgrade its “clean steel” manufacturing processes.

The new projects are expected to be completed and commissioned by FY26. At 10:52 AM, shares of JSW Steel were trading 0.47% lower at ?930.25 on the BSE.