The Financial Express reported that JSW Steel has almost halved its workforce at its US steel mills to remain competitive in the current scenario.

Mr MVS Seshagiri Rao joint MD of JSW Steel "We have cut jobs by 40% to 50% at our units in the US in the last Q2 to bring the workforce in line with the capacity utilization of the mills."

Mr Rao said "Almost all the steel mills in the US are running at much lower production capacity due to the slump in steel demand on account of the economic crisis. We are running our mills at 10% to 15% of their production capacity."

He said "We are optimistic for things to improve in the coming quarters with the stimuli measures taken by the US administration. We will increase the capacity utilization in line with the revival in steel demand. We have no plans to sell our US pipes and plate making plants. Looking at our forward integration, it is a right strategic fit for the company in the long run."

Even as it has trimmed production and workforce in the US, JSW Steel said it will revive the output with the possible rise in demand for steel in the coming months.

The mills altogether employed 950 workers in 2007 when the Texas based mills were bought at USD 810 million. The mills can produce 1.2 million tonne of plates and 0.5 million tonne of pipes annually and are currently running at only 10% to 15% of their capacity.

(Sourced from The Financial Express)