Under an agreement announced Monday, ArcelorMittal would pay a nominal US$1 to Nippon Steel, plus receive cash and partner loan forgiveness in an amount estimated to be approximately US$900 million. 

The deal came at the behest of Nippon Steel, which is moving to address regulatory concerns around its U. S. Steel acquisition. 

ArcelorMittal and Nippon Steel acquired the Calvert, Ala., USA, plant from thyssenkrupp in February 2014 and have operated it as a joint venture since. The plant includes a state-of-the-art hot strip mill and, soon, a 1.5 million metric ton electric arc furnace (EAF). 

The furnace, combined with ArcelorMittal’s HBI facility in Texas, will enable Calvert to supply automotive customers with lower-CO2-embodied steel, melted and poured in the U.S.

“With more investments under consideration — a second EAF and a non-grain-oriented electrical steels line — Calvert will continue to fulfill its critical role in supplying domestic manufacturing industries,” ArcelorMittal said.