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ArcelorMittal completes the acquisition of Nippon Steel Corporation's interest in AM/NS Calvert
Globenewswireยท 2025-06-18 17:30
Core Viewpoint - ArcelorMittal has completed the acquisition of Nippon Steel Corporation's 50% equity stake in AM/NS Calvert, gaining full ownership of the facility, which is a significant step in enhancing its presence in the U.S. steel market [1][5][11] Acquisition Details - The acquisition was finalized in accordance with the Equity Purchase Agreement signed on October 11, 2024, with ArcelorMittal already holding the remaining 50% stake [1] - The facility, now named ArcelorMittal Calvert, was originally acquired in 2014 for $1.55 billion and has undergone over $2 billion in capital expenditures since then to improve efficiency and product offerings [2][11] Facility Capabilities - ArcelorMittal Calvert has an annual flat rolled steel capacity of 5.3 million metric tonnes and is recognized as one of the most advanced steel finishing facilities in North America [2] - The facility includes a new state-of-the-art steelmaking facility capable of producing 1.5 million metric tonnes of low CO2 steel annually, which will support automotive customers [2][3] Strategic Investments - A new seven-year domestic slab supply agreement with NSC has commenced, averaging 750,000 metric tonnes per year, ensuring a significant portion of slab requirements are met domestically [2] - The company plans to invest $1.2 billion to construct a non-grain-oriented electrical steel manufacturing facility at the Calvert site, expected to produce up to 150,000 metric tonnes annually [4][11] Financial Implications - In FY 2024, AM/NS Calvert generated EBITDA of $614 million, with approximately 60% reflected in ArcelorMittal Group EBITDA [11] - Following the acquisition, ArcelorMittal's net debt is expected to increase by approximately $1.3 billion, with an exceptional gain of about $1.5 billion anticipated in its 2Q 2025 results [11] Future Outlook - The company aims to establish a manufacturing center of excellence at Calvert, focusing on safety and expanding its product portfolio to meet growing automotive mobility demands [10][11] - The facility is positioned to play a pivotal role in supporting the U.S. steel industry's revitalization and addressing critical market needs [11]