- Dec 12, 2000
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http://www.industryweek.com/leadership/steel-giant-plows-1-billion-us-and-more-will-follow
India’s top steelmaker JSW Steel Ltd. 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 that’s seen the mill ramp up local output.
“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 in an interview. After meeting half its target for 10 million tons of capacity overseas, the steelmaker is now looking to buy more facilities, Rao said in Mumbai.
While the global industry has been roiled this year by tariffs imposed by U.S. President Donald Trump on some flows of steel into the world’s top economy, 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, Mumbai-based JSW has been busy: after announcing a move to triple output at its Texas plant, it snapped up another U.S. facility in Ohio, taking total planned investment in the country to $1 billion.
...
Ritesh Shah, an analyst at Investec Capital Services Ltd., said JSW’s decisions were sound in the context of the curbs. “It does make sense to have manufacturing bases in U.S. and Europe in an increasingly protectionist world,” said Shah. “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.”
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Cool. Sounds like globalization don't give a fuck about tariffs. Good for the American workers in those steel mills. I just hope the fact they have jobs overcomes any butthurt they might feel over working for capitalists in India. I do think it's interesting that foreign steelmakers can dodge tariffs by buying American plants and selling that steel to American manufacturers at a higher price (protected by Trump's tariffs). Where do the profits go? How much of those profits are reinvested back in the US? Does it even matter, as long as American steel mills are running and Americans can keep those blue collar jobs?
India’s top steelmaker JSW Steel Ltd. 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 that’s seen the mill ramp up local output.
“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 in an interview. After meeting half its target for 10 million tons of capacity overseas, the steelmaker is now looking to buy more facilities, Rao said in Mumbai.
While the global industry has been roiled this year by tariffs imposed by U.S. President Donald Trump on some flows of steel into the world’s top economy, 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, Mumbai-based JSW has been busy: after announcing a move to triple output at its Texas plant, it snapped up another U.S. facility in Ohio, taking total planned investment in the country to $1 billion.
...
Ritesh Shah, an analyst at Investec Capital Services Ltd., said JSW’s decisions were sound in the context of the curbs. “It does make sense to have manufacturing bases in U.S. and Europe in an increasingly protectionist world,” said Shah. “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.”
---
Cool. Sounds like globalization don't give a fuck about tariffs. Good for the American workers in those steel mills. I just hope the fact they have jobs overcomes any butthurt they might feel over working for capitalists in India. I do think it's interesting that foreign steelmakers can dodge tariffs by buying American plants and selling that steel to American manufacturers at a higher price (protected by Trump's tariffs). Where do the profits go? How much of those profits are reinvested back in the US? Does it even matter, as long as American steel mills are running and Americans can keep those blue collar jobs?
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