JSW Steel USA Ohio Inc, a US subsidiary of JSW Steel, has signed a long-term agreement with local steel producer Allegheny Technologies Inc. to convert JSW’s locally produced carbon steel slabs into hot rolled coils.
The agreement will help diversify JSW’s steel offerings in the US, while also generating revenue for Allegheny Technologies and improving its utilization levels.
The Indian company called Allegheny Tech’s Hot Rolling and Processing Facility ‘one of the world’s most powerful hot-rolling mills’, and said the agreement will help supply high quality hot rolled products required by JSW customers in the U.S..
The US is seeing something of a renaissance in the area of steel-making, thanks to steps taken former president Donald Trump to protect local industries and tax imports.
JSW said the US company will hot-roll a significant percentage of carbon steel slabs produced by JSW Steel USA.
Hot rolled steel is steel that has been roll-pressed at very high temperatures, above the re-crystallization temperature. This makes the steel easier to form as well as cheaper. It is also considered stronger, since such products are free of internal stresses that result from the process of rolling after steel has set into a crystalline pattern.
“The agreement expands JSW Steel USA’s ability to thus enhancing its product portfolio. Securing access to ATI’s HRPF – – enables JSW Steel USA to produce materials that maintain high-strength at high temperatures,” said the Indian company.
As far as Allegheny is concerned, said JSW, the agreement will help increase the capacity utilization of “its highly automated HRPF” in a capital-efficient manner that provides a reliable source of operating cash flow.
“ATI is pleased to support JSW’s resurgence into the U.S. hot rolled carbon market,” said ATI Specialty Rolled Products’ President Thomas P. DeLuca.
JSW USA said the deal will help supply “melted & manufactured” products, such as slabs, HRC, plates and pipes, to customers in the USA.
“This partnership with ATI allows us to supply the high-quality products required by our customers and is in line with our strategy of increasing the share of “melted and manufactured in the US” products in our product mix,” said Mark Bush, CEO of JSW USA.
“The collaboration with ATI allows us to operate our electric arc furnace at the most optimal volumes and efficiency, lowering our conversion costs. This is in direct alignment of our long-term growth strategy and in support of our many valued customers.”
JSW will use the output of its plant at Mingo Junction, Ohio, for supplying steel to Allegheny Tech’s Pennsylvania-based plant.