In a statement, ArcelorMittal said adding melt capabilities to the jointly owned AM/NS Calvert LLC plant will allow it to take a more prominent position in the North American automotive supply chain.  

“An electric arc furnace at Calvert makes strategic sense as it allows our asset to be more reactive to the local market as well as being in line with the USMCA. Furthermore, it aligns with our ambition of producing smarter steels for a better world,” said ArcelorMittal chairman and chief executive Lakshmi Mittal. 

The company said the furnace will be capable of producing 1.5 million tons annually. Construction is expected to take 24 months. 

“This is a logical next step in optimizing AM/NS Calvert’s supply chain. Enhancing our already highly competitive lead times with short lead time flexibility, combined with our existing world-class facilities, will give AM/NS Calvert a decisive competitive advantage,” said Brad Davey, ArcelorMittal North America chief executive. 

“In addition, the USMCA trade agreement is a ‘game changer’ for (what was once) the North American Free Trade Agreement, and, as a result, future steel supply chains for the automotive markets will be required to use steel that was created within North America. A new EAF at AM/NS Calvert will further secure ArcelorMittal’s leadership in the North American automotive market.”

The AM/NS Calvert plant was originally built by thyssenkrupp and was acquired by a 50-50 joint venture made up of ArcelorMittal and Nippon Steel Corp. in 2014.