Sajjan Jindal’s JSW SteelBSE -0.93 % is eyeing acquisition of steel-making assets in the United States, spurred by its US-based steel mill’s improved financial performance after US President Donald Trump’s Make in America policy brought smokestack businesses back into the reckoning.
“Our experience with overseas investments has not been very good, therefore, we are very careful before we step out to overseas, “Chairman Sajjan Jindal said on the sidelines of the annual general meeting of JSW Steel shareholders, adding, however, that they are “looking at opportunities in the US.”
Sajjan Jindal, chairman, JSW Steel’s interest in US steel-making assets assumes significance as it recently lost in a competitive bid to acquire troubled Italian steelmaker Ilva. The Italian steelmaker was acquired by a consortium led by Lakshmi Mittal’s ArcelorMittal.
Ilva was bid by two consortiums, namely AcciaItalia, led by JSW, and Ama Investco Italy, led by ArcelorMittal.The strategic importance of bidding for Ilva was that Italy is one of the largest markets for Indian steel.
Jindal is encouraged by the performance of the US business.
“The US plant has been doing well after the Donald Trump administration, as there has been a transition towards `America first’ by supporting the American industries and stopping dumping by the Chinese and other countries. So, I think it’s a good sign that the steel industry will become more solid,“ he added.
Source: Economic Times