ArcelorMittal Takes Full Control of AM/NS Calvert
ArcelorMittal Completes Absolute Possession of Calvert Facility, Aims for U.S. Growth
ArcelorMittal has officially claimed the reins of the AM/NS Calvert steel plant, following the completion of the Equity Purchase Agreement back in October 2024. After buying out Nippon Steel Corporation's 50% share, the facility, now known as ArcelorMittal Calvert, is solely under ArcelorMittal's control.
Initially purchased in a joint venture with NSC from ThyssenKrupp in 2014 for $1.55 billion, this Alabama-based operation is one of North America's most cutting-edge steel finishing plants. With a staggering capacity of 5.3 million metric tonnes yearly, it boasts high-end hot strip mills, cold rolling capabilities, and advanced coating lines to cater to the automotive and energy sectors.
Since the original acquisition, over $2 billion has been injected into upgrades. A brand new steelmaking facility producing 1.5 million metric tonnes of low CO2 steel annually is now up and running. ArcelorMittal has also negotiated a seven-year domestic slab supply agreement with NSC and is examining further steelmaking expansion.
In a bold move, ArcelorMittal announced a $1.2 billion investment in February 2025 to build a non-grain-oriented electrical steel (NOES) manufacturing facility at the Calvert site. By 2027, this project aims to produce up to 150,000 metric tonnes yearly, boosting U.S. manufacturing competitiveness and reducing reliance on imported electrical steel.
CEO Aditya Mittal speaks of the transformation of Calvert into a low-carbon, high-grade steelmaking hub with vast potential for additional growth. North America CEO John Brett hints at plans to turn Calvert into a manufacturing center of excellence backed by a sustainable, domestic supply chain.
The Calvert plant contributed $614 million in EBITDA during FY 2024. Post-transaction, ArcelorMittal anticipates 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 earmarked for the EAF expansion in the second half of 2025.
ArcelorMittal closed at $30.68 on the NYSE on June 18, up 1.39%, but holding steady in after-hours trading. For feedback and comments, reach us at editorial@our website.
Insights
Originally began operations in 2010, the AM/NS Calvert facility is one of the most advanced steel finishing plants in North America. Its flat-rolled steel capacity stands at 5.3 million metric tonnes annually, equipped with state-of-the-art machinery such as a hot strip mill designed for advanced high-strength steels (AHSS), line pipe, and stainless steel products, alongside continuous pickling and tandem cold mill lines optimized for automotive production.
ArcelorMittal's acquisition is financially beneficial despite increasing net debt, potentially impacting the company's capital valuation positively by near $1.4 billion or about €1.60 per share. The transaction sets the stage for ongoing expansion with advanced steel production capabilities, including a new electrical steel plant, further enhancing its strategic value.
The acquisition of the AM/NS Calvert steel plant by ArcelorMittal not only secures full control of the facility but also positions the manufacturing industry to pursue advanced steel production, such as the upcoming non-grain-oriented electrical steel (NOES) plant. This shift benefits the business sector, especially the automotive and energy industries, as well as the finance sector, with positive impacts on ArcelorMittal's capital valuation and future growth prospects.
