India's JSW Steel Ltd. said March 26 that it signed a memorandum of understanding to invest up to US$500 million in expanding operations in Texas. The company's Texas operations supply the energy, petrochemicals, defense and other heavy-equipment sectors in the U.S.
To boost U.S. manufacturers, President Donald Trump enacted tariffs of 25% on global steel imports and 10% on aluminum earlier in March.
JSW Steel will spend US$150 million to boost the capabilities of its plate and pipe mill in Baytown, Texas. The remaining US$350 million will be used to establish a new hot end facility for the steel melt and manufacture facility, subject to approvals.
The CapEx program is expected to be completed by March 2020.
The state governor approved a US$3.4 million grant from the Texas Enterprise Fund to the company in support of the move, which will see JSW Steel (USA) Inc. rebranded as JSW USA.
"Access to natural gas at extremely economical prices and the abundant availability of scrap steel in Texas make conditions very conducive for manufacturing through the electric arc furnace route," parent company JSW Group's Parth Jindal said in a statement.