JSW Steel to consolidate US operations, merge select Indian units

JSW Steel Ltd

on Friday (October 17) announced a major strategic reorganisation aimed at simplifying its corporate structure and improving operational efficiency, including the consolidation of its US operations and the merger of select Indian subsidiaries.

The company’s Board of Directors approved the plan at its meeting, stating that the exercise will help streamline operations and enhance financial synergies across geographies.

In the United States, JSW Steel plans to bring all its business operations—including the Baytown plate and pipe mill in Texas and the Ohio steel manufacturing unit—under a single holding company. Currently, these assets are housed under two separate entities, Periama Holdings LLC and Acero Junction Holdings Inc. The restructuring will integrate both businesses, along with certain coking coal assets in West Virginia, under one umbrella structure.

According to the company’s filing with stock exchanges, the move is part of JSW’s "ongoing efforts to consolidate and simplify the overall group structure." Importantly, the reorganisation does not involve any sale of overseas investments, and JSW Steel will retain the same economic interests in its Netherlands-based subsidiary and its US operations.

The plan, once implemented, is expected to reduce the number of legal entities, simplify compliance, and create a unified management structure for its American business. JSW said there will be no benefit to the promoter group, as the restructuring is limited to internal, wholly-owned subsidiaries.

In India, JSW Steel is also set to merge some of its domestic units with the parent company to further optimise resource allocation and management oversight. The mergers will help streamline decision-making and improve capital efficiency, the company said.

Shares of JSW Steel ended half a percent in the red on Friday. The stock has gained 29% in the year so far.