In accordance with the definitive Equity Purchase Agreement (the “EPA”) signed between ArcelorMittal (the “Company”) and Nippon Steel Corporation (“NSC”) on 11 October 2024, the Company confirms that it has completed the acquisition (the “transaction”) of NSC’s 50% equity stake in AM/NS Calvert, with ArcelorMittal already holding the balance.
The facility, now renamed ArcelorMittal Calvert, was originally acquired by ArcelorMittal and NSC in 2014 from ThyssenKrupp for total consideration of $1.55 billion. The operation was originally built at a cost of approximately $5 billion. It commenced operations in 2010 and has a flat rolled steel capacity of 5.3 million metric tonnes, annually. It is one of the most advanced steel finishing facilities in North America, with assets that include:
State-of-the-art hot strip mill (HSM) designed to roll advanced high strength steels (AHSS), Line Pipe & Stainless products
Continuous Pickling Line (CPL) and coupled Pickle Line-Tandem Cold Mill (PLTCM) optimized for auto production (including exposed)
Coating and Continuous Annealing Lines, galvanized, galvanneal, aluminized, and cold rolled, which can supply advanced automotive grades including Gen3 AHSS and Press Hardened Steel (PHS).
Since the acquisition in 2014, more than $2 billion in capex investments have been made to improve operational efficiency and enhance product offerings to the U.S. automotive and energy markets. Strategic investments include additional slab bays and cranes, a state-of-the-art logistics center to support high-volume pipe production and increased coil size, capability enhancements to the three coating lines and continuous annealing line, and the new state-of-the-art steelmaking facility with the capacity to produce 1.5 million metric tonnes of low CO2 steel, annually. The new steelmaking facility will be capable of supplying exposed automotive grades. Commissioning and first heat (an initial batch of molten steel marking the start of operations) were completed this month. In addition, a new seven-year domestic slab supply agreement with NSC has commenced, averaging 750,000 metric tonnes per year, ensuring a significant portion of the slab requirements are melted and poured in the United States. The feasibility of a steelmaking expansion at the site, which would further strengthen its U.S. domestic production capability, is being assessed.
The new steelmaking facility, integrated with ArcelorMittal’s HBI facility in Texas, will enable Calvert to supply automotive customers with lower CO2 embodied steel, melted and poured in the United States.
In February 2025, the Company announced its intention to invest $1.2 billion to construct an advanced, non-grain-oriented electrical steel (NOES) manufacturing facility at the same site in Calvert, Alabama. The new facility will be capable of producing up to 150,000 metric tonnes of NOES annually, in support of automotive and mobility, renewable electricity production and other industrial and commercial markets. The project can strengthen U.S. manufacturing competitiveness and reduce U.S. dependency on electrical steel imports through the expansion of domestic NOES production. The project is advancing to schedule: 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. First NOES production is expected in 2027.
Commenting, ArcelorMittal CEO, Aditya Mittal, said:
“ArcelorMittal has a long and proud history in the United States, a country which values the strategic importance of its steel industry. We are delighted to be further enhancing our presence in this important and attractive market with full ownership of Calvert.
“I remember clearly the first time I visited the facility, back in 2014. A state-of-the-art, high-quality finishing line, we knew immediately that this was an asset with great potential. Since that time, we have invested considerably and transformed the facility into a highly strategic steelmaking asset, capable of producing the highest quality, low-carbon-emissions steels, and with considerable further opportunity to grow. The construction of a new electrical steel facility is already underway, and we are also evaluating the potential of further enhancing steelmaking capacity.
“Most importantly, I want to thank all our great people at Calvert for their absolute commitment to ensuring that this facility is world class in every respect, and also highlight that we have an incredibly bright future ahead of us. We are already breaking new ground in terms of the types of steels being produced in an electric arc furnace, and we will ensure that Calvert stays at the cutting edge for the most sophisticated customer segments, such as electrical steels, while always prioritising world-class safety performance.”
ArcelorMittal North America CEO, John Brett, added:
“Certainly, we know the Calvert asset extremely well and thus, consolidating it into the ArcelorMittal Group will naturally occur. We have a great team which is motivated by the opportunities to further expand and enhance the capabilities of the asset, thereby strengthening our position as a top producer of American steels for the most demanding applications.
“Our vision is to establish an ArcelorMittal manufacturing center of excellence in Calvert with safety always the first priority. We have already started the expansion of Calvert’s world class assets with our new EAF which is supported by a resilient and sustainable domestic supply chain, including HBI from our plant in Texas. Additionally, our planned NOES facility will broaden our product portfolio, supplying the growing automotive mobility demands.
“The US is well positioned to have a strong and revitalized future and Calvert has a pivotal role to play in supporting that, addressing critical market needs with evolving societal transformations, and contributing to economic strength and skilled jobs in the region.”
Financial implications of the transaction:
In FY 2024, AM/NS Calvert generated EBITDA of $614 million (approximately 60% of this was reflected in ArcelorMittal Group EBITDA). Following the transaction, ArcelorMittal’s net debt is expected to increase by approximately $1.3 billion. In accordance with the terms of the EPA, ArcelorMittal paid $1 consideration for the shares of NS Kote Inc., which holds 50% of the equity interest of AM/NS Calvert, in addition to cash and loans receivable of approximately $0.9 billion. As a result, following the transaction, the Company expects to record an exceptional gain of approximately $1.5 billion in its 2Q 2025 results (final amount being subject to completion of the purchase price allocation). Sustaining/normative capex requirements are expected to be approximately $90 million annually, with an additional $90 million capex anticipated in 2H 2025 related to the EAF project.
Forward-Looking Statement
