With a new CEO to look after its dismal US operations and some enquiries there about new orders, JSW Steel is hoping to increase its American production four-fold by the end of 2011-12. The US plant has been operating at a meagre 10 per cent capacity utilization for some years. It is the first time the company is looking at increasing the output. The company hopes to use 40 per cent of its capacity in the US by the end of next financial year. The company has been putting together a robust sales team and is already seeing some results.
The US operations have been a drag on the books of the company. With the hoped-for, four-fold increase in production on the back of bigger orders, JSW Steel hopes the plant should break even at the profit after tax level. It has an interest outgo of $25 million per year and depreciation of $30 m.
