ArcelorMittal and Nippon Steel Corp. executed a definitive agreement to invest approximately $775 million to build an electric-arc furnace (EAF) at AM/NS Calvert, a joint venture between the companies located in Calvert, Ala. The EAF is scheduled to start operation in the first half of 2023. AM/NS Calvert currently produces steel-sheet products by processing semi-finished products (slabs) procured from domestic and overseas suppliers. The new EAF will enable the facility to manufacture the slabs necessary to produce its steel-sheet products. This, in turn, will enable AM/NS Calvert to shorten lead time in slab procurement, improve its productivity through utilization of self-manufactured high-temperature slabs and increase the domestic procurement ratio of slabs. The EAF will have a capacity of 1.5 million metric tons per year.

In addition, the EAF will produce slabs for automotive flat products, including advanced high-tensile steel sheets.