18 June 2025, 19:30 CET
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
This document contains forward-looking information and
statements about ArcelorMittal and AM/NS Calvert. These statements
include financial projections and estimates and their underlying
assumptions, statements regarding plans, objectives and
expectations with respect to future operations, products and
services, and statements regarding future performance.
Forward-looking statements may be identified by the words
“believe”, “expect”, “anticipate”, “target”, "projected",
"potential", "intend" or similar expressions. Although
ArcelorMittal’s management believes that the expectations reflected
in such forward-looking statements are reasonable, investors and
holders of ArcelorMittal’s securities are cautioned that
forward-looking information and statements are subject to numerous
risks and uncertainties, many of which are difficult to predict and
generally beyond the control of ArcelorMittal, that could cause
actual results and developments to differ materially and adversely
from those expressed in, or implied or projected by, the
forward-looking information and statements. These risks and
uncertainties include those discussed or identified in the filings
with the Luxembourg Stock Market Authority for the Financial
Markets (Commission de Surveillance du Secteur Financier) and the
United States Securities and Exchange Commission (the “SEC”) made
or to be made by ArcelorMittal, including ArcelorMittal’s latest
Annual Report on Form 20-F on file with the SEC. ArcelorMittal
undertakes no obligation to publicly update its forward-looking
statements, whether as a result of new information, future events,
or otherwise.
About ArcelorMittal
ArcelorMittal is one of the world’s leading
integrated steel and mining companies with a presence in 60
countries and primary steelmaking operations in 15 countries. It is
the largest steel producer in Europe, among the largest in the
Americas, and has a growing presence in Asia through its joint
venture AM/NS India. ArcelorMittal sells its products to a diverse
range of customers including the automotive, engineering,
construction and machinery industries, and in 2024 generated
revenues of $62.4 billion, produced 57.9 million metric tonnes of
crude steel and 42.4 million tonnes of iron ore. Our purpose is to
produce smarter steels for people and planet. Steels made using
innovative processes which use less energy, emit significantly less
carbon and reduce costs. Steels that are cleaner, stronger and
reusable. Steels for the renewable energy infrastructure that will
support societies as they transform through this century. With
steel at our core, our inventive people and an entrepreneurial
culture at heart, we will support the world in making that
change.
ArcelorMittal is listed on the stock exchanges
of New York (MT), Amsterdam (MT), Paris (MT), Luxembourg (MT) and
on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and
Valencia (MTS).http://corporate.arcelormittal.com/
Contacts:
ArcelorMittal Investor
Relations General +44
20 7543
1128Sustainability +44
203 214 2490
Bonds/Credit
+33 157 955
035E-mail investor.relations@arcelormittal.com
ArcelorMittal Corporate
Communications Paul
Weigh +44 20 3214
2419E-mail:
press@arcelormittal.com
ArcelorMittal North America
CommunicationsChris
Mason +1 219 666
4636E-Mail:
northamerica.press@arcelormittal.com
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