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 geo-political issues, including the Russia-Ukraine crisis,
has 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.
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