ArcelorMittal considering Alabama expansion
ArcelorMittal, the global steelmaker headquartered in Luxembourg, has outlined its near-term investment plans in the United States, as indicated in its recent presentation accompanying the 2023 year-end and fourth-quarter results.
The company’s ongoing project involves the construction of a 1.5 million tons per year electric arc furnace (EAF) mill in Calvert, Alabama, which is anticipated to be completed in the latter half of this year. Moreover, ArcelorMittal is exploring the possibility of adding a second 1.5 million-ton EAF at a lower capital expenditure intensity.
Adjacent to its EAF complex in Alabama, the company plans to double the capacity of its Texas hot briquetted iron (HBI) scrap alternative production plant located in Corpus Christi, Texas. This facility was acquired from Austrian steelmaker Voestalpine in 2022. The Texas HBI plant achieved production records in 2023, prompting ArcelorMittal’s decision to expand its capacity.
While ArcelorMittal faced challenges in Europe, leading to losses in the second half of last year, North America, particularly the U.S.-Mexico-Canada (USMCA) region, is becoming increasingly favorable for the company’s operations. ArcelorMittal has highlighted the strategic importance of the U.S. market as a growth focus, citing favorable domestic policies that support the domestic industry and enhance the competitiveness of domestic manufacturing.
In addition to its endeavors in North America, ArcelorMittal is also investing in Europe and Canada. The company has secured funding to strengthen its presence in the EAF sector, undertaking blast furnace/basic oxygen furnace-to-EAF conversion projects in Canada, France, and Spain, while also upgrading its EAF mill in Luxembourg.
Furthermore, ArcelorMittal is focusing on enhancing its scrap recycling and collection capabilities in Europe, aiming to establish approximately 1 million tons of steel scrap processing capacity through acquisitions in the U.K., Germany, and the Netherlands.
These investments and capital expenditures across continents align with ArcelorMittal’s commitment to lead the market in low-emissions steel solutions, reflecting the company’s broader strategic goals and environmental initiatives.
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