The Italian government provided the Servizi Assicurativi del Commercio Estero (SACE) guarantee covering around 70 million dollar out of the total financing. The intention behind such move is promoting Italian exports. The announcement of investment came during the time when the World Steel Association made prediction that the steel demand in the US will not contract anytime during the year against other major consumers
JSW’s US unit raised 182 million dollar long-term debt for the upgradation of its plate mill in Baytown, Texas, from Italy’s Intesa Sanpaolo and Banco BPM. Nearly worth 100 million dollar of the equipment such as cutting line, rolling mill, grinding machine and water treatment system will be supplied by three Italian firms, to upgrade the facility.
The Italian government provided the Servizi Assicurativi del Commercio Estero (SACE) guarantee covering around 70 million dollar out of the total financing. The intention behind such move is promoting Italian exports. The remaining portion of capital is a term loan, said JSW Steel in a statement 27 October.
The shares of JSW Steel jumped 5.44 per cent closing at Rs. 679.45 on the BSE on 27 October showed the news after the benchmark Sensex ended 0.36 percent higher. JSW Steel holds significant operations in the USA and as well as Italy.
The announcement of investment came during the time when the World Steel Association made prediction that the steel demand in the US will not contract anytime during the year against other major consumers.
JSW Steel’s plate and pipe mill in the US recorded earnings before interest, tax, depreciation and amortisation (EBITDA) of 25 million dollar which went up by 88 per cent year-on-year. However, sequentially it was down in the previous quarter. On the other hand, the company’s Ohio unit reported loss of 40 million dollar EBITDA after sales halved.