JSW Steel to spend $110 million on US facility to support US’ green energy push

The company’s US-based subsidiary, JSW Steel USA plans to produce high-quality monopile steel plates that are meant to be used in the planned expansion of offshore wind energy generation, which has a target of deploying 30 gigawatts (GW) by 2030. 

JSW said in a statement that it plans to introduce sustainable technology and state-of-the-art equipment at its Baytown facility with a view to support the US government’s planned offshore wind energy generation target.

“The new upgrades at our Plate Mill support the long-term ESG initiative of JSW USA and support decarbonization of the Energy Spectrum in the United States of America. The new investments will enable us to progressively deliver high-quality steel products while further defining our niche markets through a Made in America speciality steel portfolio. These investments have the potential to significantly reduce U.S. import reliance in the infrastructure and renewable energy sectors,” said Parth Jindal, Director of JSW Steel USA in the statement.

Renewed focus

The company’s US-based subsidiary also plans to enhance its domestic manufacturing capabilities for end-use within the renewable energy and infrastructure sectors, with the proposed investment. “In doing so, JSW USA will expand its “Made In USA” product portfolio by insourcing the production of American-made steel slabs from its production facilities at Mingo Junction, Ohio,” the company added in the statement.

Steel products made post the investment will be aligned with ‘Buy America’ requirements for niche grades and sophisticated applications such as hydrocarbon pipelines, offshore wind towers, offshore wind platforms, high-density pressure vessels, monopile steel slabs and platforms for offshore wind towers, it added.

Also Read: Why JSW Steel’s expansion push is not enough to woo investors

Further, the portfolio expansion due to the fresh investment is also expected to support the expanded development of the domestic renewable energy market by increasing JSW USA’s service capacity towards its customers within the offshore wind market.

Gathering pace

The new project, the company believes, will build upon the recent investment of $145 million it made to introduce a clean steel manufacturing processes at its Mingo Junction facility, which is expected to be completed and commissioned by FY26.

This announcement, according to Rob Simon, chief executive of JSW Steel USA, is a true testament to the long-lasting relationship between the US and India in this critical industry.

Also Read: JSW Steel’s new coated steel product to power renewable energy sector

That apart, the company’s US plate and pipe mill in Texas produced 116,105 net tonnes of plates and 8,825 net tonnes of pipes during the fourth quarter of the fiscal year 2024, while reporting capacity utilization of 49% and 6%, respectively. 

The sales volumes for the quarter from the mill stood at 100,668 net tonnes of plates and 8,245 net tonnes of pipes, reporting earnings before interest, tax, depreciation, and amortisation (Ebitda) of $23.7 million.

The India-based parent company, JSW Steel had reported a 64.54% year-on-year (YoY) fall in its net profit to ₹1,299 crore during Q4FY24, while consolidated revenue from operations also fell 1.5% YoY to ₹46,269 crore.

Shares of JSW Steel were down 0.5% to ₹930.70 on the National Stock Exchange (NSE) around noon on Tuesday’s trading session.

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Published: 25 Jun 2024, 11:30 AM IST