JSW Steel (USA) has proposed investing up to USD 500 mln to modernize and expand its recently acquired Acero Junction integrated steel plant in Ohio, increasing the facility’s competitiveness and laying the foundation for future capacity expansion.
The investment will be carried out in two phases. Phase 1 involves an investment of approximately USD 250 mln, including the acquisition cost, to revamp and restart the plant’s electric arc furnace (EAF) and slab caster, while modernizing the hot strip mill.
In Phase 2, subject to market conditions, feasibility studies and regulatory approvals, JSW will evaluate adding a second electric arc furnace and additional equipment at the hot strip mill. The second phase could require a further investment of up to USD 250 mln, increasing the Ohio facility’s production capacity to 3 mln tons per year.
The proposed investment follows JSW Steel’s acquisition of Acero Junction Holdings Inc. and would raise the group’s planned investment in U.S. steelmaking operations to up to USD 1 bln.
Located on the Ohio River, the Acero Junction plant currently includes a 1.5 mln tons per year EAF, a 2.8 mln tons per year slab caster and a 3 mln tons per year hot strip mill, capable of producing hot rolled coils up to 2,000 mm wide and 1.5-10 mm thick.
JSW said the expansion complements its existing plate and pipe operations in Baytown, Texas, and supports its strategy to produce American-melted and manufactured steel. Upon completion of the planned investments, the company aims to increase its total U.S. steelmaking capacity to 4 mln tons per year, comprising 3 mln tons at Acero Junction and 1 mln tons at Baytown.
JSW Steel currently has a consolidated crude steel production capacity of 35.9 million tons per year and plans to expand it to 51.5 million tons per year by FY2030-31.