According to the reports, JSW USA has restarted electric furnace at its Ohio plant operating under the name ‘Acero Junction Inc.’ and cast first slabs at the plant which was not operational for more than nine years. The plant is located in Mingo Junction village in Ohio.
The steelmaker said it “successfully melted and continuously slab cast our first heat on 12/14/2018” and had launched the mill into regular production. “We are producing CSB – 1006 (commercial quality grade) initially and will move onto the structural steels and HSLA (high strength low alloy) grades throughout the month of December.”
In March 2018, JSW Steel has entered into an agreement with JSM International, Acero Junction Holdings and Acero Junction Inc. to acquire 100% shareholding in Acero Junction, in U.S. for a cash consideration of USD 80.85 million.
In 2009, the Russian-based OAO Severstal had closed the Mingo Junction mill ( now Acero Junction) after purchasing it from Wheeling-Pittsburgh a year earlier. Later, Severstal sold the plant to the RG Steel Corp. in Pulaski, Pennsylvania, which filed for bankruptcy in May 2012.
JSW Steel headquartered in India had announced a proposal in June this year to invest USD 500 million to enhance and upgrade Acero Junction Inc.’s steel manufacturing plant with a potential capacity of 3 MTPA (million tonnes per year) of steel.
The proposal involved investment in two phases. The first phase involved revamp and restart of plant’s electric arc furnace and slab caster while modernizing the hot strip mill. The second phase’s plan involves evaluation of the possibility of another electric furnace as well as manufacturing equipment at the hot strip mill depending upon the economic viability and prevailing market conditions.
Acero produces hot rolled coils which are typically used in consumer durables like refrigerators, washing machines, and automobiles. Acero’s acquisition has given JSW Steel to get a manufacturing presence in the US and gain deeper access into the North American market. This is JSW’s second major investment as the company had also announced plans to invest USD 500 million at its existing plant at Baytown in Texas and expects its U.S. operations to turn profitable in the next two years. The U.S. steel industry is reviving after the tariffs announced by U.S. government on steel imports which have benefited the Indian manufacturers having their operations in the U.S.
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