JSW Steel buys U.S. mills

By Dave Hannon -- Purchasing, 8/22/2007 11:03:00 AM

India's fourth- biggest steelmaker JSW Steel plans to spend $900 million to buy three steel mills in the U.S. from fellow Indian firm Jindal Saw.

According to news reports, JSW Steel will acquire 90% stakes in three U.S.-based firms from Jindal Saw: Jindal Enterprises, Jindal United Steel Corp. and Saw Pipes USA.

The deal is a family affair of sorts, as JSW Steel’s managing director is Sajjan Jindal, which Jindal Saw is a New Delhi-based pipe company led by Sajjan Jindal’s brother, Prithvi Raj Jindal.

With the purchase “JSW would get an entry point into the growing and booming oil and gas sector in North America, which is driving up plate and pipe demand,'' the company said.

Jindal said the company will export captive steel plates to its new plants in US which will be used to make pipes.

The deal is the latest in a continuing trend of mergers and acquisitions in the global steel industry. (See Steel Consolidation heats up but impact on buying community is unclear). Earlier this year India’s Tata Steel made headlines with its buy of Corus Group.

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