The Hindu Business Line reported that JSW Steel has cut its capital expenditure plans in the US by 60% to USD 400 million due to weak demand and a slowing economy. Mr Seshagiri Rao, Joint Managing Director, JSW Steel, told Business Line that “The company had already invested USD 250 million in restarting production at Mingo Junction in Ohio in the first phase and similar amount was to be invested in the second phase which has been put off till the demand improves. In Baytown, the company had invested USD 150 million but has put off construction of a new electric-arc furnace with an investment of USD 350 million until market conditions improve. The capacity utilization at present in the US is very low and the company wants it to improve substantially before taking a call on incurring further CAPEX.”
Last year, the company had plans to invest USD 500 million each in two of its steel plants at Baytown in Texas and Ohio to enhance capacity and improve operational efficiency.
Source of information