Press Trust of India / New Delhi May 12, 2009, 17:40 IST
Sajjan Jindal-led JSW Steel today said it has no plans to sell its US-based units even as mills are operating at only 10-15 per cent of their production capacity amid waning demand on account of the economic crisis.
"We have no plans to sell our US pipes and plate-making plants. Looking at our forward integration, it is a right strategic fit for the company in the long run," JSW Steel Joint Managing Director M V S Seshagiri Rao told PTI.
A media report today said JSW Steel was open to sell its US plants at a price lower than what it had incurred on their acquisition to cut on its mounting losses.
The US arm of JSW Steel had in November 2007 bought the Texas-based mills, which produce plates and pipes, from Jindal United Steel, SAW Pipes USA and Jindal Enterprises for $810 million. The mills produce 1.2 million tonnes of plates and 0.5 million tonnes of pipes annually.
JSW Steel has been operating its US plants at 10-15 per cent of the capacity following a steep decline in demand for the commodity from sectors like oil and gas.
Citing distressed US economy, the steel major has also deferred its plans to increase its pipe-making capacity by five lakh tonnes. It, however, is optimistic of things to improve in coming quarters with the stimuli measures take by the US administration.
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