ArcelorMittal announced plans Thursday for a $1.2 billion expansion at the AM/NS Calvert plant at the northern edge of Mobile County.
Last April, the company announced that it had been awarded $280 million in federal tax credits for such a project, which will be owned by ArcelorMittal alone, rather than the joint partnership with Nippon Steel that operates the other Calvert facilities.
The new plant will be able to produce 150,000 metric tons of non-grain-oriented electrical steel annually. NOES steel is used in automotive, renewable energy production and other industrial uses such as electric motors and generators. It is considered a critical element in electric vehicle and battery production.
Construction is to begin in the second half of this year with production starting in 2027, creating about 1,300 jobs during construction and more than 200 jobs at the plant.
“We recognize the importance of creating a resilient, sustainable domestic supply chain for this critical material,” said John Brett, CEO, ArcelorMittal North America, as he thanked state and local officials for their support.
“Iron and steel manufacturing put Alabama on the map as a key industrial leader more than a century ago. Today, ArcelorMittal’s $1.2 billion investment strengthens Alabama’s position as a leader in the steel industry,” said Gov. Kay Ivey. “While creating over 200 new jobs, this project will also bring tremendous economic benefits to our state and underscores Alabama’s commitment to supporting companies that drive progress and create opportunities for our citizens.”
Peter Leblanc, ArcelorMittal North America’s chief marketing officer, said, “We’re committed to meeting the growing demand for high-quality electrical steels while helping customers overcome their supply chain challenges. The new plant will greatly enhance our capacity to support manufacturers by providing a steady domestic supply of high-quality NOES, enabling them to produce superior products and avoid material shortages, extended lead times and cost volatility associated with overseas supply chains.”
The AM/NS joint venture in Mobile includes a river terminal, hot strip mill, cold rolling mill, hot dip galvanizing lines, rail yard and more.
The new facility, which will be owned solely by ArcelorMittal, will include an annealing pickling line, cold-rolling mill, annealing coating line, packaging and slitter line and related equipment.
Bradley Byrne, president and CEO of the Mobile Chamber of Commerce, also praised the announcement, saying, “ArcelorMittal’s decision to invest more than a billion dollars is driving job creation and innovation. This transformative project strengthens our local economy and reinforces Mobile County’s role in the future of sustainable steel production and electric vehicle manufacturing.”
ArcelorMittal Calvert is a wholly owned subsidiary of ArcelorMittal, one of the world’s largest steel companies with steel-making facilities in 24 countries and an annual production of 57.9 million metric tons and revenues of $62.4 billion.
