ArcelorMittal fully acquires Calvert from Nippon Steel

Global iron and steel company ArcelorMittal has announced the completion of the acquisition of Nippon Steel’s 50% stake in the AM/NS Calvert joint venture. From now on, the Alabama-based company will operate under the new name ArcelorMittal Calvert and is fully owned by ArcelorMittal.

Calvert is one of the most modern finished steel producers in North America with an annual capacity of 5.3 million tons of flat products. Its infrastructure includes a state-of-the-art hot rolling mill, continuous pickling and cold rolling lines, and coating facilities for the production of high-quality automotive steel.

Since the joint acquisition in 2014, the companies have invested over $2 billion in the development of the enterprise. The largest project was the construction of a new electric arc furnace (EAF) steelmaking facility with a capacity of 1.5 million tons per year. The facility was commissioned this month. It will allow the company to produce low-carbon steel, including automotive grades, fully “melted and poured in the U.S.”.

In addition, in February 2025, ArcelorMittal announced a new $1.2 billion investment in the production of electrical steel (NOES) in Calvert. The project’s capacity is up to 150 thousand tons per year. The first products are expected to be produced in 2027. The project will contribute to import substitution and strengthen the competitiveness of the US steel sector.

The agreement also provides for a seven-year slab supply contract with Nippon Steel, averaging 750 thousand tons per year. This will support the uninterrupted supply of raw materials for production at Calvert.

In 2024, AM/NS Calvert generated $614 million in EBITDA. After the buyout of Nippon Steel’s stake, ArcelorMittal’s net debt will increase by about $1.3 billion, but the company also expects to record a one-off profit of about $1.5 billion in Q2 2025.

ArcelorMittal is considering further capacity expansion at the Calvert site, which is becoming the center of the company’s steel production in the United States.

As GMK Center reported earlier, ArcelorMittal reduced steel production by 0.3% year-on-year to 57.9 million tons in 2024. Iron ore production in the period increased by 0.9% y/y – to 42.4 million tons. Steel shipments to customers in the period amounted to 54.3 million tons (-2.3% y/y), and iron ore (only for AMMC and Liberia) – 26.4 million tons (+0% y/y).

Over the past year, the company reduced its net profit by 52.2% compared to 2023 to $2.33 billion. EBITDA decreased by 19.3% y/y – to $7.05 billion. Operating income amounted to $3.31 billion, up 41.4% y/y.

ArcelorMittal is a leading global steel and mining company with operations in 60 countries and production assets in 18 countries.