JSW Steel today said it will invest up to USD 500 million (about Rs 3,390 crore) to acquire, upgrade and enhance US-based integrated steel manufacturing unit Acero Junction Inc in phases.

Acero Junction Inc, an integrated steel manufacturing unit with a potential capacity of 3 MTPA (million tonne per annum), is located in Ohio. The proposed investment will be made in two phases.

"This investment takes JSW's overall investment blueprint for the US market, to produce American melt and manufactured steel, to up to USD 1 billion," the company said in a regulatory filing.

In phase 1, JSW will revamp and restart the electric arc furnace and the slab caster, and modernise the hot strip mill.

The proposed investment, including the cost of acquisition, is expected to be approximately USD 250 million.

JSW Steel said in phase 2, depending upon the economic viability and prevailing market conditions, the company will evaluate the possibility of adding another electric arc furnace as well as additional manufacturing equipment at the hot strip mill to make the Ohio facility a fully integrated unit with 3 MTPA capacity.

The proposed investment in phase 2 could be in the range of up to USD 250 million, subject to feasibility studies and necessary approvals, it added.

The integrated steel manufacturing unit in Ohio was acquired as part of the recently concluded Acero Junction Holdings Inc deal.

The proposed investment by JSW Steel follows the memorandum signed by JSW Steel (USA) Inc in March 2018 to consider an investment of up to USD 500 million for expanding its operations in Texas, US.