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Released April 18, 2022 | SUGAR LAND
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Steelmaker ArcelorMittal (NYSE:MT) (Luxembourg, Luxembourg) announced last week it will purchase an 80% stake in Voestalpine's (Linz, Austria) hot-briquetted iron (HBI) plant in Corpus Christi, Texas, for about $680 million.
The deal--which is expected to close in the next two to three months--for the majority of the 2 million-ton-per-year HBI plant also includes a long-term agreement to provide Voestalpine with 420,000 tons per year of HBI for its steel mills in Austria. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can click here for a list of steel mills and facilities belonging to Voestalpine worldwide.
The remaining production will be delivered to outside parties, and to the Calvert steelmaking facility in Alabama, north of Mobile--a 50:50 joint venture between ArcelorMittal and Nippon Steel Corporation (Tokyo, Japan)--after construction of an electric arc furnace addition at the facility is complete in 2023. The electric arc furnace (EAF) will be fed in part with the HBI from the Corpus Christi plant. Subscribers can click here for the project report.
"This is a compelling strategic acquisition for our company," ArcelorMittal Chief Executive Officer Aditya Mittal said in a press release. "It accelerates both our progression into producing high-quality metallic feedstock for EAFs and our global decarbonization journey."
The company said the HBI plant, which opened in 2016, could fully switch from using natural gas to green hydrogen as a feedstock in the future.
Industrial Info is tracking US$7.29 billion in ArcelorMittal projects worldwide that have a high and medium (70-99%) probability of moving forward as planned. Subscribers can click here for a list of detailed project reports.
The steelmaker is planning an EAF addition at the Dofasco steel operation at its Hamilton Steel Works in Ontario, Canada, and an on-site 2 million ton-per-year direct reduced iron plant to supply the facility. Both are expected to be operational in 2028. Subscribers can see project reports on the Hamilton EAF and direct reduced iron additions.
ArcelorMittal also is planning projects in Europe. The company plans to reduce its emissions in Spain by 50% by building a 2.3 million ton-per-year green hydrogen-powered direct reduced iron (DRI) plant in Gijon. The related Phase I involves the plant construction, and Phase II will add a new hybrid EAF. Subscribers can see project reports on Phase I and Phase II. Phase I is expected to kick off in June 2023, with completion in late 2024, to be followed by Phase II.
The DRI will be transported to what is expected be the world's first zero-carbon steel plant, in Sestao, Spain. Projects to power all process and supporting equipment and EAFs using renewable energy are in the planning stage. Click here for the related project reports.
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
The deal--which is expected to close in the next two to three months--for the majority of the 2 million-ton-per-year HBI plant also includes a long-term agreement to provide Voestalpine with 420,000 tons per year of HBI for its steel mills in Austria. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can click here for a list of steel mills and facilities belonging to Voestalpine worldwide.
The remaining production will be delivered to outside parties, and to the Calvert steelmaking facility in Alabama, north of Mobile--a 50:50 joint venture between ArcelorMittal and Nippon Steel Corporation (Tokyo, Japan)--after construction of an electric arc furnace addition at the facility is complete in 2023. The electric arc furnace (EAF) will be fed in part with the HBI from the Corpus Christi plant. Subscribers can click here for the project report.
"This is a compelling strategic acquisition for our company," ArcelorMittal Chief Executive Officer Aditya Mittal said in a press release. "It accelerates both our progression into producing high-quality metallic feedstock for EAFs and our global decarbonization journey."
The company said the HBI plant, which opened in 2016, could fully switch from using natural gas to green hydrogen as a feedstock in the future.
Industrial Info is tracking US$7.29 billion in ArcelorMittal projects worldwide that have a high and medium (70-99%) probability of moving forward as planned. Subscribers can click here for a list of detailed project reports.
The steelmaker is planning an EAF addition at the Dofasco steel operation at its Hamilton Steel Works in Ontario, Canada, and an on-site 2 million ton-per-year direct reduced iron plant to supply the facility. Both are expected to be operational in 2028. Subscribers can see project reports on the Hamilton EAF and direct reduced iron additions.
ArcelorMittal also is planning projects in Europe. The company plans to reduce its emissions in Spain by 50% by building a 2.3 million ton-per-year green hydrogen-powered direct reduced iron (DRI) plant in Gijon. The related Phase I involves the plant construction, and Phase II will add a new hybrid EAF. Subscribers can see project reports on Phase I and Phase II. Phase I is expected to kick off in June 2023, with completion in late 2024, to be followed by Phase II.
The DRI will be transported to what is expected be the world's first zero-carbon steel plant, in Sestao, Spain. Projects to power all process and supporting equipment and EAFs using renewable energy are in the planning stage. Click here for the related project reports.
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
