JSW USA to invest $500M in plate mill modernization and expansion project
29 March 2018
JSW USA plans to invest up to $500 million to install the most technologically advanced and eco-friendly hot-end facility in the world, setting a new industry standard. The announcement marks the second and larger phase of a plate mill modernization and expansion project that began in June 2017. This is the first equipment installation and upgrade to the facility since it was built by US Steel in 1968, and will have a major impact on many levels.
Once the hot-end project launches, JSW USA will begin what will be a $5.8-billion economic impact on the Texas economy, and is expected to create 500 new high-wage American jobs before it becomes operational 18 to 24 months later. The addition of the hot end will make JSW USA the world’s only plate mill with a contiguous large-diameter pipe mill, enabling it to be considered a “melt and manufacture” facility in the US, with a new ability to produce its own slabs to feed the mills, instead of needing to buy foreign slabs.
With Best Available Control Technology (BACT), the hot end’s electric arc furnace was designed to generate the lowest emissions possible for steel production, setting a new worldwide industry environmental standard. Further, JSW USA will be the only entity of its kind (for the products it makes in North America) blending scrap with direct-reduced iron (DRI)/hot briquetted iron (HBI), which is more energy efficient and more economical.
This overall broader production capability will increase JSW USA’s product offerings, as well as allow expansion into new, significant markets, including defense, energy, pipeline, renewable energy, and infrastructure. The facility will also provide strong support to regional business, OEMs (original equipment manufacturers), and value-added manufacturing for steel-making and associated industries, and opens the door for producing new propriety steels with R & D firms, the company said.
JSW USA contracted with Danieli for the first modernization stage of the project, and has awarded the hot end construction based on technological capabilities. The hot end will be built on 111 acres at JSW USA’s 700-acre Baytown campus.
Currently, with one of the widest mills in North America, the JSW plate division rolls hot-rolled plate widths up to 160 inches (4.1m) and thicknesses up to six inches (152.4mm). It services shipyards, oilfield fabricators, heavy equipment producers, windtower, railcar, storage tanks, and many other end users and distributors who need high quality carbon plate.
Using quality plate from JSW, the pipe division produces DSAW (Double Submerged Arc Welded) pipe (Including large diameter pipe from 24" to 48") to service energy and petrochemical markets, including large diameter line pipe for onshore and offshore use, heavy duty casing, and piling. The Pipe division also provides OD coating (Fusion Bond Epoxy, Abrasion Resistant Outer) and ID Flow Liner coating.
JSW USA, based in Baytown, Texas, is a wholly-owned subsidiary of JSW Group, a $13-billion conglomerate headquartered in India with a strong hold across core economic sectors: Steel, Energy, Infrastructure, Cement, Ventures and Sports. JSW operates a uniquely integrated plate/pipe mill complex with a strategic location for North American export markets.