ArcelorMittal confirms €1.3 billion investment in electric arc furnace in Dunkirk

Global steelmaker ArcelorMittal has confirmed the construction of an electric arc furnace (EAF) at its steel site in Dunkirk, northern France. The €1.3 billion investment in the project is seen as a key step in the strategy to decarbonize steel production in Europe. This is stated in a press release.

The launch of the new EAF with a capacity of 2 million tons of steel per year is scheduled for 2029. The use of electric arc technology will reduce CO2 emissions by three times – to 0.6 tons per ton of steel – compared to blast furnace production. As ArcelorMittal CEO Aditya Mittal noted, this project underscores the group’s long-term commitment to France and European metallurgy as a whole.

The investment will be financed by the French energy efficiency certificate (CEE) mechanism, which will cover about 50% of the project cost. The company emphasizes that the decision to start construction was made possible after a series of changes in the EU regulatory environment, in particular regarding restrictions on unfair steel imports through tariff rate quotas (TRQ) and the adaptation of the CBAM mechanism. According to ArcelorMittal Europe CEO Geert van Poelvoorde, it is the combination of trade protection and the existing CBAM that creates the conditions for the commercial success of such projects.

The company’s confidence was further bolstered by a long-term contract with EDF for the supply of low-carbon and competitively priced electricity. ArcelorMittal notes that without stable access to green electricity, the implementation of decarbonization projects would be impossible.

At the same time, the group is launching a new electrical steel production plant in Mardic near Dunkirk with an investment of €500 million. The company sees the French model as a potential benchmark for further investments in low-carbon steel production in other EU countries.

ArcelorMittal Méditerranée invested nearly €245 million in environmental and ecological projects at its sites in France between 2014 and 2024. The company has managed to reduce the overall environmental impact of its production by approximately 71%, particularly in terms of nitrogen and sulfur oxide emissions, dust, and dioxins.