Steel Giant from India Pours $1 Billion into U.S.

JSW Steel Ltd., India’s top steelmaker, says it’s scouting for more deals in the U.S. and Europe to expand its global footprint, betting that vibrant growth will underpin demand in overseas markets and complement a boom at home.

“What is driving us is that, inherently, we find it is an interesting opportunity because the U.S. economy is doing well,” and the investment cycle looks positive, Joint Managing Director Seshagiri Rao said.

While the global industry has been roiled this year by tariffs, mills are still enjoying benign conditions. Worldwide production hit a record in May as capacity utilization climbed, according to the World Steel Association.

Against that backdrop, JSW has been busy. After announcing a move to triple output at its Texas plant, it bought another U.S. facility in Ohio, taking total planned investment in the country to $1 billion.

“It does make sense to have manufacturing bases in U.S. and Europe in an increasingly protectionist world,” said Ritesh Shah, an analyst at Investec Capital Services Ltd. “One, it gives JSW Steel access to markets which would otherwise be difficult to get into. Secondly, it ensures you are closer to your customers.”

Source: Bloomberg