ArcelorMittal announced on Wednesday evening that it had signed an agreement to acquire Nippon Steel's 50% stake in their joint steel plant in Calvert, Alabama, of which it already owns 50%.

The steelmaker notes that it acquired the site in partnership with the Japanese group from ThyssenKrupp in 2014 for $1.55bn.

The plant, which was inaugurated in 2010 and is now considered one of the most modern steel mills in North America, produces around 5.3 million metric tons of steel each year.

It specializes in the manufacture of coated, galvanized, aluminized, and cold-rolled products for the automotive industry.

This new facility, which ArcelorMittal plans to locate near its HBI plant in Texas, will enable it to supply US car manufacturers with low-carbon steel produced in the United States.

The AM/NS Calvert site generated operating income of $614 million last year, but ArcelorMittal still expects its net debt to increase by $1.3bn after the transaction.

On the Paris Stock Exchange, the share was down 1.8% following these announcements, compared with a 0.6% decline for the STOXX Europe 600 Industrials sector index.


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