Wedoany.com Report on Feb 12th, ArcelorMittal has decided to build a new electric arc furnace (EAF) at its steel production base in Dunkirk, France. This strategic investment, totaling €1.3 billion, is seen as a key move by the company to advance the decarbonization of steel production in France. The electric arc furnace is expected to commence operations in 2029, with an annual production capacity of 2 million tons.

Compared to traditional steel blast furnaces, this electric arc furnace will significantly reduce carbon emissions. Based on a feedstock mix of scrap steel, hot briquetted iron or direct reduced iron, and molten iron, the CO2 emissions per ton of steel can be reduced by approximately two-thirds, dropping to 0.6 tons. Half of the project's funding will be supported by Energy Efficiency Certificates (CEE), a regulatory mechanism designed to promote energy savings and reduce CO2 emissions.

ArcelorMittal's senior management stated that recent regulatory proposals from the European Commission have boosted investment confidence. These include measures to restrict unfair imports through the Tariff Rate Quota (TRQ) mechanism and reforms to the Carbon Border Adjustment Mechanism (CBAM). These measures are expected to restore a level playing field in the European steel market and ensure the sustainability of steel production within the EU. Furthermore, the company's long-term low-carbon power supply contract with Électricité de France (EDF) provides stable energy support for the project.

ArcelorMittal CEO Aditya Mittal commented: "I am delighted that we are launching this €1.3 billion investment in Dunkirk, which demonstrates the Group's long-term commitment to France. I thank President Macron and the French government for their support. They recognized the challenges facing the European steel industry early on, and the market mechanism reforms they have promoted will benefit the entire industry, starting from Dunkirk."

ArcelorMittal Europe CEO Geert van Poelvoorde added: "The Dunkirk electric arc furnace project is viable because we now have the conditions for success. The new Tariff Rate Quotas and the Carbon Border Adjustment Mechanism will create a fairer competitive environment, and support from the government and public authorities is crucial. We will focus on ensuring the smooth completion and commercial success of the project, while also evaluating the possibility of building more electric arc furnaces in other parts of Europe."

ArcelorMittal Europe Flat Products CEO Reiner Blaschek pointed out: "Today marks an important milestone for ArcelorMittal as we launch this major decarbonization investment in Dunkirk. The effective implementation of the announced measures is crucial for the project's success. The company is transforming its operations through investment to secure the long-term future of steel production in the heart of the EU."

At the Mardyck plant near Dunkirk, ArcelorMittal will also launch a new electrical steel production unit this quarter, with an investment of €500 million, equipped with advanced technology. This is the Group's largest investment in Europe over the past decade outside the decarbonization sector, aimed at expanding product offerings and supporting the electrification needs of the industrial and automotive sectors.