Steel Products
JSW to Sell Baytown, Texas Facility
Written by Sandy Williams
August 22, 2013
JSW Steel Ltd. is considering selling its U.S. mill in Baytown, Texas said reports by Bloomberg. JSW, India’s third largest steel maker, hopes to pay off some of its debt and boost earnings margins by selling the USA asset. In its fourth quarter earnings statement in March 2013, the company reported a decline of 61.56 percent in consolidated net profit; debt is reported to be $3.4 billion.
The Baytown facility is currently operating at 40 percent capacity, said joint managing director Seshagiri Rao, but is expected to boost production to 50 percent from new construction and energy orders.
JSW acquired a 90 percent share of the Texas plant for $900 million in a joint venture in 2007 with JFE Holdings Inc. JFE now holds a 15 percent share in the company. The facility was expected to turn slabs from India into pipe and steel plate for the oil and gas industry but failed to meet expectations when the steel market bottomed out in 2008.
“The company will start looking for buyers once the plant has turned around,” said Rao in a phone interview with Bloomberg.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Products
Northwest Pipe changes name to NWPX Infrastructure
Northwest Pipe changes name to NWPX Infrastructure.
Tariffs, ample domestic supply cause importers to shift or cancel HR import orders
Subdued demand is causing importers to cancel hot-rolled (HR) coil orders and renegotiate the terms of shipments currently enroute to the US, importers say. An executive for a large overseas mill said customers might find it difficult to justify making imports buys after US President Donald Trump doubled the 25% Section 232 tariff on imported steel […]
Drilling activity slows in the US, grows in Canada
Oil and gas drilling activity was mixed this week, according to Baker Hughes. US totals slipped for a sixth straight week, while Canada saw a slight bump in activity.
Commerce finds no Korean OCTG shipments below market value
US Department of Commerce (Commerce) review found no South Korean oil country tubular goods (OCTG) exporters or producers sold products below market value
Drilling activity slows further in US and Canada
Oil and gas drilling activity declined again this week in both the US and Canada, according to Baker Hughes.