Strategic Synergy Secures Sole Stewardship

ArcelorMittal announced the completion of its acquisition of Nippon Steel Corporation’s 50% stake in AM/NS Calvert, solidifying full ownership of the advanced steelmaking facility in Calvert, Alabama. Originally a joint venture formed in 2014, the site will now operate under the name ArcelorMittal Calvert. The definitive Equity Purchase Agreement, signed in October 2024, outlined a transaction involving $1 for NS Kote Inc. shares and the assumption of $0.9 billion in cash and loans receivable. ArcelorMittal expects to record a $1.5 billion exceptional gain from the deal in its Q2 2025 financials.

Metallurgical Marvel Morphs Market Metrics

Built in 2010 at a cost of $5 billion, the Calvert facility includes a hot strip mill designed to roll advanced high-strength steel, stainless products, and line pipe. With an annual flat-rolled capacity of 5.3 million metric tons, it remains one of North America’s most advanced steel finishing plants. It features continuous pickling, tandem cold rolling, galvanising and annealing lines capable of producing Gen3 AHSS and press-hardened steel, critical for automotive safety and fuel efficiency. "This is not just a finishing facility. It’s a fully integrated steel ecosystem designed for the most demanding applications," said John Brett, CEO of ArcelorMittal North America.

Investment Infusion Ignites Innovation Initiatives

Since its 2014 acquisition, ArcelorMittal has invested over $2 billion to modernise and expand Calvert’s operations. Key investments include enhanced slab bays, high-capacity cranes, and logistics systems tailored for large-diameter pipe production. In early 2025, ArcelorMittal commissioned a new state-of-the-art electric arc furnace, which can produce 1.5 million metric tons of low-CO₂ steel annually. The EAF marks a strategic pivot toward sustainable steelmaking. “We are already breaking new ground in the types of steel we produce in an EAF,” said Aditya Mittal, CEO of ArcelorMittal. “This allows us to deliver low-carbon, high-quality steel for the world’s most sophisticated customer segments.”

Domestic Development Deepens Decarbonisation Drive

Calvert’s transformation aligns closely with U.S. industrial policy, emphasizing domestic production and decarbonisation. The facility’s integration with ArcelorMittal’s HBI plant in Texas ensures a clean, consistent feedstock for steelmaking. In parallel, a new seven-year agreement with Nippon Steel guarantees an annual average of 750,000 metric tons of slab supply, all melted and poured in the U.S. “This agreement fortifies our local value chain and guarantees long-term supply security for our customers,” noted Brett. The plant now offers fully traceable, low-CO₂ steel from origin to coil, a key demand from automotive and energy sectors.

Electrified Expansion Elevates Energy Excellence

In February 2025, ArcelorMittal announced a $1.2 billion project to construct a non-grain-oriented electrical steel manufacturing facility at Calvert. NOES is essential for electric vehicle motors, renewable power generation, and industrial applications. The new plant will produce up to 150,000 metric tons annually, reducing U.S. dependence on imported electrical steel. Earthworks are underway, permits secured, and major equipment orders placed. “With this investment, we are making Calvert the nexus of American steel innovation,” said Aditya Mittal. First production is targeted for 2027, further expanding the site’s capabilities into high-tech and energy transition materials.

Fiscal Fortitude & Forward-Looking Framework

The financial framework of the acquisition reflects strategic discipline. AM/NS Calvert posted an EBITDA of $614 million in FY 2024, of which 60% had been consolidated by ArcelorMittal. The company’s net debt will increase by approximately $1.3 billion post-transaction, but CFO Genuino Christino emphasized that the long-term returns justify the capital outlay. “We expect the investment to drive strong, sustainable value,” he said. Annual sustaining capital expenditure is estimated at $90 million, with an additional $90 million allocated in 2H 2025 for EAF enhancements.

Executive Endorsements Emphasise Evolution

Company leadership underscored the cultural and strategic significance of Calvert. “I remember my first visit here in 2014,” said Aditya Mittal. “We immediately saw the potential for transformation, and our people have delivered.” Brett echoed the sentiment: “We are building more than steel. We are building an ecosystem for innovation, resilience, and clean manufacturing.” The site now employs over 1,500 people and supports thousands of indirect jobs. ArcelorMittal envisions Calvert as a "Centre of Excellence" for low-carbon steel and advanced mobility materials.

Competitive Catalyst Cultivates Climate-Conscious Capability

With its upgraded facilities and forward-thinking investments, ArcelorMittal Calvert exemplifies how legacy industries can adapt to climate and market realities. The integration of low-emission electric arc steelmaking, vertical HBI supply chains, and domestic NOES production aligns with U.S. goals of decarbonising heavy industry and revitalising regional manufacturing. “This isn’t just a win for ArcelorMittal,” said John Brett, “it’s a win for American industrial strength, climate strategy & community development.” As global competition tightens, Calvert is poised to lead with a steel portfolio that meets tomorrow’s environmental & engineering demands.

Key Takeaways:

• ArcelorMittal has fully acquired the Calvert steel facility from Nippon Steel, gaining total control of a major U.S. production hub with a new electric arc furnace producing 1.5 million metric tons of low-CO₂ steel annually

• The company is investing $1.2 billion to build a non-grain-oriented electrical steel facility capable of 150,000 metric tons annually, with production slated to begin in 2027

• The acquisition aligns with U.S. goals for clean industrial development, strengthens domestic supply chains & expands ArcelorMittal’s ability to serve advanced automotive and energy markets