World's largest steel producer ArcelorMittal will invest USD 46.7 million in Calvert steel mill in Alabama in collaboration with Japanese JV partner NSSMC to reach the full capacity at the plant.
"ArcelorMittal, in partnership with joint venture partner NSSMC, announced two important investment projects that will further enhance the capabilities of AM/NS Calvert, the world's most advanced steel finishing facility in Calvert, Alabama," the steel giant said in a statement.
It said USD 40 million will be invested to increase AM/NS Calvert's slab staging capacity, while USD 6.7 million will be invested in its continuous coating line.
"ArcelorMittal, together with NSSMC, is committed to achieving the standard-setting potential of AM/NS Calvert, which boasts a total annual capacity of 5.3 million metric tons," said Andy Harshaw, executive vice president, ArcelorMittal USA.
While AM/NS Calvert is a state-of-the-art finishing operation capable of producing high-quality products for a variety of markets, additional improvements are needed to reach near-full capacity levels, Harshaw said.
The company said USD 40 million slab yard expansion project will increase AM/NS Calvert's slab staging capacity and efficiency. Calvert's hot strip mill currently consists of three bays with the capacity to stage around 335,000 tonnes.
It said apart from the additional capital investment using locally sourced contractors, the enhancements will create around 16 new crane operator positions and the project is expected to be complete in Q2 2016.
"This investment is a clear indication of the confidence our joint venture partners are placing in our future success and serves as a perfect example of our facility's continuing return on investment for the state and local economies," said Chris Richards, president, AM/NS Calvert.
An additional USD 6.7 million investment in facility's existing number four continuous coating line will significantly increase ArcelorMittal's North American capacity to produce press hardenable steels, notably one of the strongest steels used in automotive applications.
Currently, ArcelorMittal Indiana Harbor is the only ArcelorMittal facility in the western hemisphere producing this kind of special steel.
"This modest investment has significant market implications," said Greg Ludkovsky, vice president, global research and development, ArcelorMittal. The first coil is targeted for production in January 2015.
The aluminum-silicon coated steels provide high temperature corrosion resistance ideally suited for heat exchangers, hot stamping and exhaust parts for the automotive.
ArcelorMittal and Nippon Steel & Sumitomo Metals Corporation (NSSMC) had closed the USD 1.55 billion acquisition of the Calvert, Alabama facility, in February.
The hot mill is operating at around 80 per cent of design capacity.
