|
| JSW Steel to double US output in 3 months |
| BS Reporter / Mumbai Jul 05, 2009, 00:40 IST |
|
 Sajjan Jindal-controlled JSW Steel plans to double the output from its plate and pipe mills in the US following a revival in demand. At present, the plant is utilising 15 per cent of its 1.7 million tonnes (MT) annual production capacity. Within three months, the mills will be running at 30 per cent capacity as the market is recovering slowly, said JSW Group’s Chief Financial Officer MVS Seshagiri Rao.
“During the height of economic downturn, we decided to cut the production. But scene in the US now is quite better. If the situation keeps improving like this, the production will be in full capacity by early next year,” Rao told Business Standard.
“The order flow for plates have slightly improved, while we have received smaller orders for pipes as well. Recovery of the crude price to $70 a barrel is another reason to double production in the US,” Rao added.
JSW Steel, India’s largest private sector steel maker, had indicated on May 19 that the mills could be closed down for three months starting June and the upgradation and maintenance work would be carried out in the interim period. Earlier, the company had almost halved its workforce in the US to remain competitive in the downturn scenario.
The products from JSW mills in Texas are looking for new markets in Africa and Latin America in addition to existing markets. Mexico and Chile are also the immediate next on their targeted list.
Sajjan Jindal had bought these mills from his elder brother Prithviraj Jindal’s Jindal Saw for $800 million in November 2007. These mills have 1.2 million tonnes of plates and 0.5 million tonnes of pipes making capacity in a year.
The company had recorded $74.63 million EBIDTA in the six months ended September 31, 2008. Subsequently, the crash in oil prices to less than $40 a barrel and recession in the US economy forced JSW Steel to cut down production since October 2008 due to a lack of demand.
|
|
|
|
|
|
|
|
|
|
 Read Business news in |  |
|
|
|
|
|
|
Advertisements |
|
|
|
|
|
|
|
|
|
Content Guide
