LUXEMBOURG (dpa-AFX) - ArcelorMittal (MT) has completed its acquisition of Nippon Steel Corporation's 50% stake in AM/NS Calvert, making it the sole owner of the Alabama-based flat-rolled steel facility, now renamed ArcelorMittal Calvert.
The move finalizes the Equity Purchase Agreement signed in October 2024.
The plant, initially purchased with NSC from ThyssenKrupp in 2014 for $1.55 billion, is one of North America's most advanced steel finishing facilities, with a capacity of 5.3 million metric tonnes per year. It includes high-end hot strip mills, cold rolling capabilities, and advanced coating lines to serve the automotive and energy sectors.
Since the original acquisition, over $2 billion has been invested in upgrades. A new steelmaking facility capable of producing 1.5 million metric tonnes of low CO2 steel annually has recently begun operations. ArcelorMittal also initiated a new seven-year domestic slab supply agreement with NSC and is assessing further steelmaking expansion.
In a strategic push, the company announced a $1.2 billion investment in February 2025 to construct a non-grain-oriented electrical steel (NOES) manufacturing facility at the Calvert site. Expected to produce up to 150,000 metric tonnes annually by 2027, the project aims to support U.S. manufacturing competitiveness and reduce dependency on imported electrical steel.
CEO Aditya Mittal highlighted the transformation of Calvert into a low-carbon, high-grade steelmaking hub with significant potential for further growth. North America CEO John Brett noted plans to turn Calvert into a manufacturing center of excellence supported by a domestic, sustainable supply chain.
Financially, the Calvert plant generated $614 million in EBITDA in FY 2024. Post-transaction, ArcelorMittal expects a $1.5 billion gain in Q2 2025 and a net debt increase of $1.3 billion. Annual sustaining capex is projected at $90 million, with an additional $90 million for the EAF expansion in the second half of 2025.
Wednesday, MT closed at $30.68, up 1.39%, and remained unchanged in after-hours trading on the NYSE.
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