The fate of JSW Steel’s businesses in Italy largely depends on contracts from Italian railway authorities, failing which it will look at other “alternatives”, a top official said.
JSW Steel has so far failed to revive the company it acquired in 2018, and rising raw material cost and geopolitical issues, including the Russia-Ukraine crisis, have not helped matters either.
“The losses have reduced. The loss is majorly attributed to rail orders that are not sustainable. We are striving for more rail orders. If those come, it’s fine, otherwise, some alternatives have to be thought of,” JSW Steel Joint MD & Group CFO Seshagiri Rao told PTI.
Revenue of the Italian facility in Piombino improved to euro 309 million during 2021-22 from euro 249 million earlier, while the operating loss narrowed to euro 6.4 million in the fiscal under review from euro 22.6 million a year ago.
JSW Italy has in the past won rail orders to the tune of around 40,000 metric tonnes from two contracts by Rete Ferroviaria Italiana (RFI), which oversees Italian railway infrastructure.
According to reports, Invitalia is likely to take a stake in JSW Steel Italy, with the aim of supporting relaunch of the company.
Rao said overseas operations are still minuscule for the group and it will remain focused in the Indian market for steel production.