JSW Steel cuts US capital expenditures by 60% due to low capacity utilization

JSW Steel slashed its US capex plans by 60% to $ 400 million due to weak demand and a slowing economy.

Seshagiri Rao, Managing Director of JSW Steel, told Business Line that “the company has already invested $ 250 million to restart production at Mingo Junction in Ohio in the first phase, and a similar amount should have been invested in the second phase, which was delayed until demand will not improve. In Baytown, the company invested $ 150 million but has postponed construction of a new $ 350 million electric arc furnace until market conditions improve.

The capacity utilization in the US is currently very low and the company wants it to improve significantly before deciding on additional capex. ”

Last year, the company planned to invest $ 500 million each in its two smelters in Baytown, Texas and Ohio, to increase throughput and improve operational efficiency.