In March, President Trump imposed a 25% tariff on imported steel, hoping to bolster US manufacturing. JSW Steel USA may finally be the saving grace to his policy, as it invests $500 million in a new US manufacturing plant.
The Indian-owned company will not only invest half a billion dollars in the new factory, but it will also allocate another $500 million to revamp one of its old US factories in Baytown, Texas. The new factory will be an Acero Junction factory in Mingo Junction, Ohio, which it will acquire for nearly $81 million. The rest of the money will go towards the development of the factory.
Moreover, the refurbished steel plant is anticipated to create 300 new jobs – this number isn’t gargantuan, but it isn’t too shabby for a town populated by only 3,400 people. According to CEO John Hritz, it will create at least 500 more high-tech jobs on top of the factory positions.
Domestic aluminum and steel manufacturing have struggled recently, as companies have to compete with China. President Trump has consistently accused China of dumping, an economic policy in which a country sells goods internationally at a price much lower than its market value in order to generate more sales and market share.
In a FOX Business interview, Hritz had this to say about its investment strategy:
The Trump administration was the driver behind giving us in the U.S. the ability to compete for capital…We have demonstrated that the return on investment that we can gather in this country is going to be outstanding.
This most recent investment could pave the way for more manufacturing plants in the US. If JSW Steel USA can succeed with its new and refurbished plants, steel manufacturing could bolster the economy in a new way.
Featured image via Pixabay/saweang
