After divesting its steel mills along the lakeshore in Northwest Indiana, ArcelorMittal is teaming up with Nippon Steel to invest an estimated $600 million in its much newer AM/NS Calvert mill in Alabama, where it will build a new electric arc furnace.
The modern finishing facility in Alabama currently sources slab from Northwest Indiana steel mills, including more than 1 million tons a year from ArcelorMittal Indiana Harbor in East Chicago. New owner Cleveland-Cliffs said it would continue as a supplier to the AM/NS Calvert, but the new investment in production capability would enable AM/NS Calvert to make its own steel slab in a few years, positioning it as a potential future competitor with the Northwest Indiana mills it long owned.
ArcelorMittal announced Tuesday it has finalized the deal for a 50/50 joint venture with Nippon Steel.
“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," said Brad Davey, the new CEO of ArcelorMittal North America, the successor to ArcelorMittal USA that's now based in Canada along with the ArcelorMittal Dofasco steel mill in Hamilton, Ontario. "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."
Construction of the 1.5 million ton electric arc furnace will start next year and come online in the first half of 2023. AM/NS Calvert is funding the project itself.
“I am very pleased we will be undertaking this with Nippon Steel," Davey said. "It is a natural extension of our existing, successful partnership.”
Source : https://www.nwitimes.com/business/healthcare