JSW Steel board approves reorganisation of US ops; merger of some Indian subsidiaries

India-based JSW Steel on Friday announced reorganisation of its operations in the US and merger of certain domestic subsidiaries.

The decisions in this regard were taken at its board meeting, the company said in an exchange filing.

The board of directors at its meeting has approved a strategic reorganisation of the company's US operations as part of its ongoing efforts to consolidate and simplify the overall group structure.

The company has established its footprint in the US steel manufacturing sector through investments in multiple entities under Periama Holdings LLC (Periama) and Acero Junction Holdings Inc. (Acero).

The Baytown operations, comprising Plate & Pipe mills at Baytown, Texas along with certain coking coal assets in West Virginia, are held through Periama, which is a wholly-owned subsidiary of JSW Steel (Netherlands) B.V. (JSW Netherland). The Ohio steel manufacturing operations are housed under Acero.

To simplify the group structure of the Baytown and Ohio business verticals, the board of directors of the company at a meeting held on Friday, approved the consolidation of all business operation into single holding in te US held under JSW Steel (Netherlands) B.V., subject to regulatory and other approvals.

This restructuring will optimise financial and operational outcomes.

The board has also approved the scheme of amalgamation of its wholly-owned subsidiaries -- Amba River Coke Limited, Monnet Cement Limited and JSW Retail and Distribution Limited -- with the company.

The merger will bring operational efficiency as there are synergistic linkages between these companies, JSW Steel said. The plan is expected to reduce the number of legal entities, simplify compliances and create a unified holding structure for US business. The restructuring and consolidation exercise does not entail any sale of the company's overseas investments and the company continues to have the same economic interests in the Netherland Co. and its operations in US.