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JSW will invest up to $500 million in Mingo Junction facility

SIGN OF NEW TIMES — JSW Steel has made its presence known in Mingo Junction with the placement of its new sign at the main entrance to the plant off Commercial Avenue near state Route 7. JSW announced its intentions for the mill after it announced it had closed on the purchase of the former Wheeling-Pittsburgh Steel Corp. plant from Acero Junction Holdings last Friday. Up to $500 million could be invested in the plant in phases, including the potential construction of a second electric arc furnace, according to an announcement made at the SelectUSA Investment Summit near Washington, D.C., Thursday. -- Paul Giannamore

WASHINGTON, D.C. — Up to half a billion dollars could be invested into what’s left of the former Wheeling-Pittsburgh Steel Corp. mill in Mingo Junction, according to an announcement made Thursday by India’s JSW Steel, the plant’s latest owner

JSW initially will spend $250 million to restart the electric arc furnace and refurbish the hot strip mill and slab caster..

JSW Steel made the announcement Thursday at the Select USA Investment Summit held at the Gaylord National Resort in National Harbor, Md., across the Potomac from Washington.

If market conditions support it, a second phase would include another $250 million investment for a second EAF and additional hot strip mill equipment, pending the outcome of feasibility studies and permit approvals, the steelmaker said.

The mill would become a 3 million ton per year plant. W-P produced about 2.5 million tons, according to its 2006 annual report. The next year, the company would begin going through a succession of owners, including Esmark, OAO Severstal, RG Steel and Acero Junction. Acero bought the EAF and hot mill from Frontier Industries in December 2016. Frontier, which acquired the property out of the RG bankruptcy, had scrapped most of the northern end of the plant, including the ironmaking blast furnaces and support facilities.

The current EAF dates to 2004, and previous owners had issues with getting it to produce at its potential capacity.

Secretary of Commerce Wilbur Ross signed a certificate evidencing the proposed JSW investment with Jayant Acharya, board member and commercial and marketing director for JSW Steel Ltd., during the investment summit.

“It is our fundamental belief that due to the rich availability of scrap metal and abundance of natural gas, making steel through the EAF route is highly competitive in the USA from a global standpoint,” said Parth Jindal, JSW Steel USA director.

Evan Scurti, executive director of the Jefferson County Port Authority, said, “This is wonderful news for Mingo Junction, Jefferson County and all local job-seekers. The port authority is looking forward to interactions with JSW as they embark on this multi-phase effort of plant modernizations, including more production capacity, that was announced today. Stable and attractive job opportunities for local citizens is always our No. 1 goal as an economic development agency. Jefferson County took a great step in that direction today.”

“We are excited to welcome JSW Steel to Ohio,” said Kristi Tanner, senior managing director for JobsOhio. “Its planned investment in Acero Junction Holdings will bring cutting-edge technology that will revitalize the facility and bring good-paying jobs to the community.”

JSW is India’s largest exporter of steel with a presence in 100 countries. The Economic Times of India reported JSW has acquired 83 percent of Acero Junction, with the remaining 17 percent being transferred after future payments. The Economic Times reported JSW will take over Acero Junction’s debt of $101.56 million.

According to the WorldSteel website, by tonnage, ArcelorMittal, which originated in India and owns the tin mill and associated production facilities in Weirton, was the leading steelmaker by tonnage in 2017, at 97.03 million tons. JSW was ranked 19th in the world, at 16.06 million tons. The Public Utilities Commission of Ohio approved a request for a lower rate for electricity that had been made by Acero Junction, which is transferable to the new owners.

Acero purchased the 80-inch rolling mill and electric arc furnace from Frontier Industries in December 2016. The plant had not made steel since 2009, when OAO Severstal idled the mill.

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