Japanese companies Nippon Steel Corp and ArcelorMittal SA will spend $ 775 million to build an electric arc furnace at their US joint venture in Alabama with a scheduled launch date in the first half of 2023, Nippon Steel reported on Tuesday.
The new kiln, to be built at the AM /NS Calvert (50-50) joint venture, will have a capacity of 1.5 million metric tons per year and will produce hot rolled, cold rolled and coated steel sheets.
Calvert currently produces steel sheets by processing semi-finished products or slabs purchased from local and foreign suppliers.
With the new furnace, Calvert will be able to independently produce some of the slabs needed to make steel sheets, which will shorten lead times and increase productivity, the largest steel producer in Japan said in a statement.
The new furnace will also produce slabs for automotive flat products, including high-strength steel sheets with improved performance.
ArcelorMittal, the world’s largest steelmaker, announced in September that it would sell most of its US assets to Cleveland-Cliffs Inc, the largest US iron ore pellet producer, but retained AM /NS Calvert.