ArcelorMittal to Build Advanced Steel Plant in Alabama
ArcelorMittal, the world's second-largest steelmaker, announced plans to construct a state-of-the-art steel manufacturing facility in Calvert, Alabama. This investment aims to bolster its production capacity to cater to the surging demand from the U.S. automotive sector.
The plant is designed to produce up to 150 kilotons annually of premium non-grain-oriented electrical steel (NOES), primarily utilized in the manufacturing of larger vehicles, including full-size pickups and SUVs. ArcelorMittal identified a growing demand for sophisticated NOES in the U.S., coupled with limited domestic supply, which is anticipated to sustain premium pricing for the new plant's output.
The construction cost of the facility is estimated at $0.9 billion, with production scheduled to commence in the second half of 2027. This investment aligns with the projected robust sales in the U.S. automotive market, attributed in part to the popularity of hybrid models. Automakers anticipate sustained strong sales in 2025, albeit acknowledging that potential changes in automotive policies, such as the removal of tax incentives for electric vehicles, could introduce uncertainty.