**JSW Steel Aims for Growth in International Operations by FY26**
JSW Steel is set to revitalize its international operations by FY26, driven by capacity expansions, improved pricing, and the implementation of import tariffs benefiting its US subsidiaries. Meanwhile, increased volumes and an enhanced product mix are expected to boost the performance of its Italian unit, according to a senior company executive.
Despite being smaller in scale compared to its extensive domestic steel production network, the financial losses from the company’s overseas operations in the US and Italy have impacted its overall margins. Jayant Acharya, JSW Steel’s joint managing director, stated in an interview, “We anticipate improved margins in the US. Our operations in Ohio are stable, and with better volumes and a favorable pricing environment, we expect the US to positively contribute to our overall performance.” The company operates a 1.5 million tonnes per annum (MTPA) electric-arc-furnace steel manufacturing facility in Ohio and a 1.75-MTPA plate and pipe production mill in Texas.
In Italy, JSW Steel manages a 0.32 MTPA rail manufacturing unit, which is considered strategically significant. The facility is currently undergoing an expansion to increase its capacity to 0.6 MTPA, allowing for the production of 120-meter-long rails, up from the current 108 meters. Acharya noted, “This year, we expect our Italian operations, which have shown positive EBITDA, to contribute favorably to our overall results.”
The Italian unit faced challenges in the fourth fiscal quarter due to rail congestion, which hindered product supply and delayed orders from the national railway. However, Acharya is optimistic that these issues will be resolved in the upcoming fiscal year. He also dismissed any speculation regarding the divestment of international assets, stating, “We are not considering divesting our assets in Italy. In the US, the operating environment has improved with tariffs in place, and our expansions in Baytown, Texas, are nearing completion. We believe we can capitalize on the current operating conditions.”
In India, JSW Steel is focused on reducing costs in FY26 to enhance its margins amid sluggish steel prices. The company plans to operationalize three iron ore mines in Karnataka this year, which will help lower raw material costs. Additionally, one iron ore mine in Goa will be brought online. The flagship mill in Vijayanagar, Karnataka, is also set to complete a 5 MTPA capacity expansion, which will not only increase production volumes but also reduce costs.
**FAQ**
**What are JSW Steel’s plans for its international operations?**
JSW Steel aims to enhance its international operations by FY26 through capacity expansions and improved pricing strategies, particularly in the US and Italy.
