JSW Steel USA secures $182 mn financing for modernising plate mill

Capital arranged by Italian export credit agency, will be used for Indian company's facility in Texas

JSW Steel USA, a subsidiary of India’s JSW Steel Limited, has secured long-term financing from two Italian banking institutions for modernising its $260 million plate mill in Baytown, Texas.

The capital raised from Intesa Sanpaolo and Banco BPM is $182 million, of which $70 million is covered under the SACE guarantee and the balance is a term loan. The financing was structured by SACE's export finance division with contribution by the SACE’s Mumbai office, which has a long-standing relationship with JSW Steel, the steel company said in a statement.

SACE is an Italian export credit agency that supports businesses through a range of tools and solutions. The SACE guarantee was provided with the intention of promoting Italian exports.

JSW Steel USA’s Plate mill modernisation project includes supplies from Italian engineering companies, Danieli & C Officine Meccaniche SpA, Danieli Automation SpA, and Danieli Taranis LLC, all subcontractors of Danieli Corporation Inc for a cutting line, rolling mill and ACC/DQ.

The project also includes supplies from Sideridraulic for a water treatment and cooling system and from Tenova for a grinding machine for the new rolling mill and related engineering services. The total value of equipment and related engineering services being provided by these suppliers is over $100 million, JSW said in its statement.