JSW Steel share price: JSW Steel’s US unit raises $182 million debt to upgrade Texas plant, stock climbs 5.44%

JSW Steel’s US unit has raised $182 million long-term debt from Italy’s Intesa Sanpaolo and Banco BPM to upgrade its plate mill in Baytown, Texas.

About $100 million of the equipment like cutting line, rolling mill, grinding machine and water treatment system for upgrading the facility will be supplied by three Italian firms.

JSW Steel in a statement Thursday said of the total financing, $70 million is covered under SACE guarantee that is provided by the Italian government with the intention of promoting Italian exports. The rest of the capital is a term loan.

The stock of JSW Steel climbed 5.44% to close at Rs 679.45 on the BSE on Thursday. Benchmark Sensex ended the session 0.36% higher.

JSW Steel has significant operations in the US and Italy.

The investment announcement comes at a time when the World Steel Association has predicted that the steel demand in the US won’t contract during the year contrary to other major consumers.

Last quarter, JSW Steel’s plate and pipe mill in the US reported earnings before interest, tax, depreciation and amortisation (EBITDA) of $25 million, up 88% year on year but down sequentially. However, the company’s Ohio unit in the US reported a $40-million EBITDA loss after sales halved.

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