JSW Steel plans to invest US$500 million in Texas, US

Indian steel major JSW Steel Limited's subsidiary JSW Steel (USA) Inc has signed a Memorandum of Cooperation with the state government of Texas, in the US to help develop steel industry in the region.

JSW Steel (USA) plans to construct a new melt and manufacture facility for contiguous plate and pipe in Texas US$350 million. The company will also update its existing steel plate mill in Baytown with an investment of US$150 million. According to the memorandum the company will also receive a grant of US$3.4 million from Texas Enterprise Fund.

This investment will help the company grow in the US market. In Texas, the company has access to cheap natural gas and scrap steel which is beneficial to manufacturing steel by using electric arc furnace.

Meanwhile, the stock of JSW Steel was quoting Rs. 297.50 per share, up by 1.31 per cent on Tuesday, when the benchmark index of BSE Sensex was at 33,179.11, up by 112.70 points or 0.34 per cent.