ArcelorMittal to Invest $1.2B in Alabama Plant for Electrical Steel Production
ArcelorMittal to Invest $1.2B in Alabama Plant for Electrical Steel Production

ArcelorMittal to Invest $1.2B in Alabama Plant for Electrical Steel Production

  • 10-Feb-2025 7:15 PM
  • Journalist: Jai Sen

ArcelorMittal, one of the world's leading steel producers, has announced plans to invest $1.2 billion in a state-of-the-art manufacturing facility in Mobile County, Alabama. The new plant will focus on producing non-grain-oriented electrical steel (NOES), a critical material used in electric vehicle (EV) motors, renewable energy production, and industrial applications. This investment will create over 200 permanent jobs and will have the capacity to produce up to 150,000 metric tons of NOES annually, depending on the product mix.

The facility will be built near the existing AM/NS Calvert steel mill, a joint venture between ArcelorMittal and Nippon Steel. Unlike AM/NS Calvert, the new plant will be wholly owned by ArcelorMittal. Alabama Governor Kay Ivey praised the investment, emphasizing its positive impact on the state’s economy and its legacy in steel manufacturing. “Iron and steel manufacturing put Alabama on the map as a key industrial leader more than a century ago. Today, ArcelorMittal’s $1.2 billion investment strengthens Alabama’s position in the steel industry while creating over 200 new jobs,” she said.

The investment is part of a broader effort to strengthen U.S. manufacturing competitiveness and reduce reliance on imported electrical steel. John Brett, CEO of ArcelorMittal North America, highlighted the importance of securing a stable domestic supply chain. “We recognize the importance of creating a resilient, sustainable domestic supply chain for this critical material,” Brett stated. He also acknowledged the support from Alabama state officials, including Governor Ivey, Commerce Secretary Ellen McNair, the Mobile County Commission, and the Mobile Chamber, for facilitating the project.

Construction is expected to begin in the second half of 2025, with production set to commence in 2027. The project is anticipated to generate up to 1,300 jobs during the construction phase. The facility will incorporate cutting-edge manufacturing capabilities, including an annealing pickling line, cold-rolling mill, annealing coating line, packaging and slitter line, and other advanced equipment to ensure high-quality NOES production.

Peter Leblanc, Chief Marketing Officer for ArcelorMittal North America, emphasized the plant’s role in addressing supply chain challenges faced by manufacturers. “The new plant will greatly enhance our capacity to support manufacturers by providing a steady domestic supply of high-quality NOES. This will enable them to produce superior products while avoiding material shortages, extended lead times, and cost volatility associated with overseas supply chains,” he said.

Alabama officials welcomed the project’s long-term economic benefits. Secretary of Commerce Ellen McNair highlighted the impact on key industries, including EVs and energy-efficient technologies. Mobile Chamber President Bradley Byrne noted the project’s role in driving local economic growth and reinforcing Mobile County’s status as a leader in advanced steel production.

U.S. Senator Katie Britt applauded the investment as a step toward strengthening national security by onshoring critical supply chains. “This $1.2 billion investment represents next-generation innovation that will strengthen our state and nation’s manufacturing capabilities,” she said. Congressman Barry Moore also expressed his support for the project and its role in South Alabama’s economic expansion.

With this investment, ArcelorMittal is reinforcing its commitment to sustainable steel production and securing the future of domestic electrical steel supply, positioning Mobile County as a hub for advanced manufacturing.

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