ArcelorMittal to Build New EAF in Dunkirk to Advance Decarbonization

Core Insights - ArcelorMittal S.A. has announced a strategic investment of Euro 1.3 billion to construct an electric arc furnace (EAF) at its Dunkirk steelmaking site, which is a significant move towards decarbonizing steel production in France [1] Group 1: Investment and Operations - The new 2-million-ton EAF is expected to commence operations in 2029 and will achieve a threefold reduction in CO2 emissions compared to traditional blast furnaces [2][6] - Approximately 50% of the total investment will be supported by France's Energy Efficiency Certificates (CEE) scheme due to the sustainable benefits of the EAF [2][6] - Additionally, ArcelorMittal is investing Euro 500 million in a new electrical steel production unit at its Mardyck plant, marking the largest investment in Europe in the last decade, excluding decarbonization efforts [4][6] Group 2: Policy and Market Context - The decision to invest reflects increasing confidence in the evolving European policy framework, including recent proposals from the European Commission aimed at strengthening the Tariff Rate Quota (TRQ) system and reforming the Carbon Border Adjustment Mechanism (CBAM) [3] - These policy changes are anticipated to better protect European steelmakers from unfair imports and carbon leakage, facilitating the swift advancement of this investment [3] Group 3: Stock Performance - Over the past year, ArcelorMittal's stock has increased by 117.4%, outperforming the industry average rise of 59.8% [4]