Home-grown JSW Steel on Thursday said its US arm has raised $182 million from two Italian banking institutions to fund modernising of its plate mill facility in Baytown, US.
Its subsidiary JSW Steel (USA) owns and operates one of the largest plate mills of America having an installed capacity of more than 1.2 million tonne per annum.
JSW Steel USA has tied-up long-term financing with two Italian banking institutions, Intesa Sanpaolo and Banco BPM, for its Plate Mill modernisation project in Baytown, JSW Steel said in a statement on Thursday.
The capital of $182 million has been raised, the company said in a reply to a query on the status of the transaction. The total cost of the modernisation project is $260 million. The remaining funding will be through internal accruals, it said.
Advertisement
"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 said.
In 2007, the JSW group bought the then bankrupt Baytown steel asset for $810 million.
JSW Steel USA's Plate Mill facility located at Baytown in Texas is undergoing a major modernisation upgrade.The modernisation project involves addition of a 4-Hi Finishing Mill, pre-leveler, accelerated cooling system/direct quench (ACC/DQ), cooling beds and new roll shops.
"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 said.
Advertisement
JSW Steel commenced the phase II upgrade of its plate mill facility located at Baytown in 2021 and aims to complete it by 2023.
Just one email a week