Nippon Steel and ArcelorMittal sign an agreement to build an electric arc furnace (EAF) at AM/NS Calvert. The 1.5mn mt annual capacity EAF will start operations in H1 2023, according to Nippon Steel’s statement. AM/NS Calvert is a 50:50 joint venture between Nippon Steel and ArcelorMittal.
The Calvert plant manufactures steel sheet products from semi-finished slabs procured from domestic and overseas market. The new EAF will produce a part of the slabs required for in-house production, thereby shortening procurement lead times and improving productivity. The EAF will also produce slabs for flat auto steel products, including high-tensile steel sheets.
Investment for the furnace is approximately $775mn.
An EAF at Calvert will allows the plant to be more reactive to the local market demand as well as improve the company’s product mix for the USMCA market. It is also a step towards smarter and greener steels, according to ArcelorMittal’s release on its intent to build an EAF at Calvert in August.
AM/NS Calvert’s steel processing plant is located in Calvert, Alabama. The plant has an annual capacity to produce 5.3mn mt flat rolled carbon steel products with a hot strip mill, three hot dip galvanizing lines, cold rolling mill, river terminal, rail yard and other facilities.