ArcelorMittal fires up steelmaking at Calvert mill

“Last week, we proudly marked the startup of our modern steelmaking facility—an achievement that represents more than just operational progress,” said a LinkedIn post by AM/NS Calvert on Wednesday. “It’s a bold investment in the future of Alabama’s industrial landscape and a powerful boost to our local economy.”

Commissioning may be complete, but there’s still plenty of work to be done. Through the end of this year, ArcelorMittal plans to spend an additional $90 million in capex related to the EAF project. It plans to reach the furnace’s full annual run rate of 1.65 million short tons (st) early next year.

Recall that, since 2014, AM/NS Calvert had been a 50/50 joint venture between ArcelorMittal and Nippon Steel. As part of its recently finalized acquisition of U.S. Steel, Nippon sold its stake to ArcelorMittal. So, as of last week, ArcelorMittal is now the sole owner. And the mill, first opened as a rerolling and finishing mill in 2010 by ThyssenKrupp Steel USA, is now known as ArcelorMittal Calvert.

The Calvert mill now has 1.65 million st of melting capacity and 5.8 million st of flat-rolled steel rolling and finishing capacity, encompassing hot rolling, cold rolling, and coating operations.

The new furnace will reduce the mill’s reliance on outside slabs and increase its ability to participate in publicly funded work, like infrastructure projects, that require steel to be melted and poured in the US.

Additionally, ArcelorMittal announced it has secured a seven-year domestic slab supply agreement with Nippon Steel. The agreement averages 826,700 st (750,000 metric tons) per year, “ensuring a significant portion of the slab requirements are melted and poured in the United States.”

The addition of a second EAF to the Calvert mill is still under consideration. “The feasibility of a steelmaking expansion at the site, which would further strengthen its US domestic production capacity, is being assessed,” ArcelorMittal noted.

Even CEO Aditya Mittal commented last week that the “highly strategic steelmaking asset” has “considerable further opportunity to grow.”

Note: SMU has updated our EAF Status Table to reflect the furnace’s start-up.

Electrical steel update

Also at the Calvert site, ArcelorMittal’s non-grain-oriented electrical steel (NOES) facility is advancing on schedule.

The company said last week, “All long lead equipment purchase order have been issued, and manufacturing has commenced for major process equipment; all construction permits related to air and water have been received; earthwork and piling are in progress and work on the main construction packages are underway.”

The $1.2-billion project will have the capacity to produce 165,000 st annually, with the first NOES production expected in 2027.