JSW Steel is set to invest $500 million at its Baytown, Texas, US, mill in a multi-phase project that will include the installation of an electric-arc furnace, said a report.

The move comes at a time of heightened trade tensions following US President Donald Trump’s implementation of a 25 per cent tariff on steel imports, added the S&P Global Platts report.

JSW’s Baytown mill is dependent on imported slabs to produce its plate and pipe products, it said.

JSW signed a memorandum of cooperation with Texas Governor Greg Abbott, including a Texas Enterprise Fund grant offer of $3.4 million for the steelmaker.

Parth Jindal of Mumbai-based parent company JSW Group, said that the investment reiterates their commitment to stay invested and grow in the US market.

He noted that it also provides JSW Steel US an opportunity to participate in the country’s infrastructure development and job creation priorities.