Nippon Steel Corporation and ArcelorMittal SA executed a definitive agreement on December 22 to build a new 1.5 million tonnes per year electric arc furnace at 50:50 JV AM/NS Calvert LLC in Alabama in United States at approximately USD 775 million investments. The EAF is scheduled to start its operation in the first half of 2023. With the newly built EAF, Calvert will be able to manufacture by itself part of slabs necessary to produce its steel sheet products and will strive for further strengthening its competitiveness through advantages of the self-manufacture, such as shortening lead time in slab procurement, improving its productivity through utilization of self-manufactured high temperature slabs, and increasing the domestic procurement ratio of slabs. In addition, the EAF will produce slabs for automotive flat products, including Gen3 advanced high tensile steel sheets of 980Mpa and above.
AM/NS Calvert currently produces hot rolled, cold rolled and coated steel by processing slabs procured from domestic and overseas suppliers. It has a Hot Strip Mills of 5.3 million tonnes per year capacity, a Pickling Line Tandem Cold Mill of 2.5 million tonnes per year, a Continuous Annealing Line of 0.6 million tonnes per year and three Continuous Galvanizing Lines of approximately 1.4 million tonnes per year