ArcelorMittal, Nippon Steel to build EAF in Alabama
Photo courtesy of ArcelorMittal

ArcelorMittal, Nippon Steel to build EAF in Alabama

The companies report that the EAF will produce about 1.5 million tons of steel slabs.

December 22, 2020

Luxembourg-based ArcelorMittal has signed a definitive agreement with Japan-based Nippon Steel Corp. to build an electric arc furnace (EAF) at the AM/NS (ArcelorMittal/Nippon Steel Corp.) Calvert, Alabama, rolling mill complex. The EAF will be capable of producing 1.5 million tons of steel slabs for the adjacent hot strip mill and will be able to produce a spectrum of steel grades required for Calvert’s end-user markets.

ArcelorMittal had announced plans to build an EAF at AM/NS Calvert in August. According to a news release from ArcelorMittal, the EAF will be a 50/50 joint venture between ArcelorMittal and Nippon Steel.

ArcelorMittal reports that construction of the new EAF capacity, which will cost about $775 million, will start in 2021. The company aims to have the EAF come online in the first half of 2023. The project is being funded by AM/NS Calvert.

“This is an important project for AM/NS Calvert, which builds additional flexibility to its slab sourcing and will increase its responsiveness to short lead time orders,” says Brad Davey, CEO of ArcelorMittal North America. “AM/NS Calvert is already one of the world’s finest steel finishing facilities. Adding this state-of-the-art EAF will further strengthen its capabilities and enhance its ability to serve its full range of customers. I am very pleased we will be undertaking this with Nippon Steel; it is a natural extension of our existing, successful partnership.”

Nippon Steel reports in a news release that Calvert currently produces steel sheet products by processing semifinished slabs procured from domestic and overseas suppliers. With the new EAF, Calvert will be able to manufacture by itself part of slabs necessary to produce its steel sheet products. Nippon Steel says the EAF will produce slabs for automotive flat products, including Gen3 advanced high-tensile steel sheets.

“Nippon intends to concentrate its resources on Calvert, which has one of the most distinguished equipment capabilities in the United States, and to further strengthen its supply capability of full range of products including the state-of-the-art steel products in [N]orth America,” Nippon Steel reports.