ArcelorMittal plans to integrate EAFs into electrical steel production chain in Europe

The steelmaker ArcelorMittal plans to supply its European electrical steel operations with raw materials produced in electric arc furnaces. This was discussed during the Kallanish Europe Steel Markets conference.

As noted by Olivier Gervais, Head of the Electrical Steel segment at ArcelorMittal Europe, the company currently relies on supplies from blast furnace production in Dunkirk and Fos-sur-Mer. However, he confirmed that the group’s planned investment in an EAF in Dunkirk (scheduled to start up in 2029) will ultimately support the production of this product.

According to Gervais, preparations for the transition are already underway.

ArcelorMittal is increasing its investment by €500 million to expand electrical steel production in Europe. The company recently began commissioning a new processing line in Mardyck (France), delivering the first commercial volumes of product in May.

According to the group, the investment will enable it to triple its electrical steel production capacity to 300,000 tonnes per year. This will make ArcelorMittal the only European producer with two production sites and two processing sites dedicated to this segment.

However, despite the positive outlook for demand, according to Gervais, competition in the segment remains fierce, particularly from Asian suppliers. The latter, given the EU’s trade measures, are increasingly supplying derived products to the bloc.

It should be recalled that in April this year, ArcelorMittal France announced the production of the first coil on the new electrical steel production line at the site in Mardyck. This new complex is a strategic growth project for the company. Together with the existing production facility in Saint-Chély-d’Apcher, it is set to triple the group’s electrical steel production capacity in Europe to 295,000 tonnes per year. Consequently, all of the company’s European electrical steel production will be concentrated in France.