Market Segment
February 15, 2026
CRU: ArcelorMittal to build EAF at Dunkirk, France
Written by CRU
This news item was first published by CRU. To learn about CRU’s global commodities research and analysis services, visit www.crugroup.com.
A €1.3 bn ($1.55 bn) project to install a 2 Mt/y electric arc furnace (EAF) at Dunkirk, northern France, will go ahead, ArcelorMittal confirmed during a site visit to the integrated steel works by French President Emmanuel Macron.
The decarbonization plan had been called into question because of funding, policy, and market challenges the group faced. But in recent months the European Commission has proposed toughening safeguards and amending the carbon border adjustment mechanism (CBAM) to better protect the steel sector.
“Assuming the measures are fully implemented as envisaged, ArcelorMittal expects them to restore fair and competitive conditions in the European steel market, thus securing a sustainable future for steel production within the European Union,” the Luxembourg-headquartered company said.
The group has also signed a contract with power generator EDF to secure a long-term supply of low-carbon, competitive electricity – which it says is major step in ArcelorMittal France’s energy strategy.
In addition, half of the EAF’s €1.3 bn capex will be met by France’s Energy Efficiency Certificates (CEE) scheme, which promotes energy savings and carbon dioxide reduction. The EAF is scheduled to start up in 2029.
“ArcelorMittal is investing and transforming its operations to secure the long-term future of steel production at the heart of the European Union, serving its European customers,” Chief Executive Officer of ArcelorMittal Europe (flat products) Reiner Blaschek said.
Geert van Poelvoorde, CEO of ArcelorMittal Europe, commented: “We will review the possibility of building further EAFs elsewhere in Europe, taking a cautious attitude that is consistent with our economic decarbonisation approach.”
“Having a strong steel industry in each European country in which we operate is a crucial foundation for thriving industry, and I hope that the conditions created in France can be replicated elsewhere so that we have a strong business case to invest further in the future,” he added.
“If we want to build cars and infrastructure in our Europe, we need to produce European steel and less carbon-intensive steel,” President Macron said while speaking to some of Dunkirk’s 3,200 employees.
