Under the agreement, voestalpine will retain the remaining 20% share. The deal values the plant at US$1 billion.
 
ArcelorMittal said in a press release it has also signed a long-term offtake agreement with voestalpine to supply an annual volume of HBI comparable to its equity stake in the company’s steel mills in Donawitz and Linz, Austria. The remaining balance of production will be delivered to third parties and to ArcelorMittal facilities, including AM/NS Calvert in Alabama.
 
“This is a compelling strategic acquisition for our company. It accelerates both our progression into producing high-quality metallic feedstock for EAFs and our global decarbonization journey,” ArcelorMittal chief executive Aditya Mittal said.
 
“ArcelorMittal is already one of the world’s largest producers of DRI,” Mittal added. “This acquisition will further strengthen our position and guarantee security of supply to AM/NS Calvert, while our experience will bring significant value to the asset. DRI is a feedstock which has a very important role to play in our decarbonization ambitions, as we have announced plans to construct DRI facilities at several sites across Europe and in Canada. Today’s transaction therefore represents an important further step in our climate action journey.”
 
ArcelorMittal has in the past year accelerated its Innovative-DRI strategy, announcing projects to construct additional DRI and EAF capacity at its operations in Belgium, Canada, France and Spain.
 
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