MOBILE, Ala. (AP) — An Alabama steel mill is getting a $500 million expansion that’s expected to create 200 direct jobs, officials said.
ArcelorMittal announced the expansion plans Wednesday for it AM/NS Calvert mill in north Mobile County. The company intends to add an electric arc furnace to its operations, capable of producing 1.5 million metric tons of steel slabs, news outlets reported.
Currently, slabs of steel are brought in via ships from Brazil. With this expansion, slabs will be produced on site. The project is expected to take 24 months to complete, with more than 500 on-site construction jobs added, according to company officials.
BREAKING: Steelmaker @ArcelorMittal announces major expansion plans at the AM/NS Calvert mill in Mobile County.
✅New electric arc furnace
✅300 jobs in the community
— Made in Alabama (@MadeinAL) August 12, 2020
ArcelorMittal executives said the project will allow the company to capitalize on the new USMCA trade agreement, which will require more North American steel for the automotive industry.
“An electric arc furnace at Calvert makes strategic sense as it allows our asset to be more reactive to the local market as well as being in line with the USMCA,” ArcelorMittal chief executive Lakshmi Mittal said in a statement. “Furthermore, it aligns with our ambition of producing smarter steels for a better world.”
Jorge Oliveira, AM/NS Calvert CEO, said they’ve discussed expansion for many months. “This investment is not only positive for our company but also for the community,” he said.
Gov. Kay Ivey hearkened to the state’s industrial past in celebrating the project.
“Alabama has a long heritage in steelmaking, and the decision by AM/NS Calvert to invest more than $500 million at its Mobile County mill represents another important development in the history of the industry in the state,” she said.