JSW steel shares rose 5.33% to Rs 678.80 after its subsidiary JSW Steel USA signed a long-term financing agreement with two Italian banks, Intesa Sanpaolo and Banco BPM, for a plate mill modernization project in Baytown, Texas and raised USD 182 million.

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The SACE guarantee covers $70 million of the entire funding required for JSW Steel USA’s Baytown mill modernization project, while the remaining $112 million is a term loan.

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“The total cost of the modernisation project is USD 260 million. The remaining funding will be through internal accruals. Out of the USD 182 million financings, USD 70 million is covered under the SACE guarantee and the balance of USD 112 million is a term loan. The SACE guarantee is provided with the intention of promoting Italian exports,” JSW Steel said.

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The JSW company paid USD 810 million in 2007 to acquire the assets of the bankrupt Baytown Steel. JSW Steel USA’s Plate Mill plant in Baytown, Texas, is undergoing extensive modernization.

A 4-Hi Finishing Mill, pre-leveller, accelerated cooling system/direct quench (ACC/DQ), cooling beds, and new roll shops are also part of the modernization project.

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“Once completed, it will put JSW Steel USA in a position to deliver higher quality products as well as enter new markets. The modernisation will support the requirement of on & offshore wind tower, agriculture, construction, storage tank and surface critical market segments,” it said.

JSW Steel began the phase II upgrading of its Baytown plate mill plant in 2021 and expects to finish it by 2023.

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In Q2 FY23, the steel giant posted a consolidated net loss of Rs 848 crore, compared to a net profit of Rs 7,170 crore in Q2 FY22. Revenue from operations increased 28.9% to Rs 41,122 crore in Q2 FY23, up from Rs 31,909 crore in the previous year’s equivalent period.

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JSW Steel, the flagship business of the diverse JSW Group, is India’s leading integrated steel firm, with 28.5 MTPA of steel-making capacity in India and the United States (including capacities under joint control).