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Steelmaker breaks ground on new facility in Calvert

The new $775 million steelmaking facility was announced in December.

AM/NS Calvert internal leadership commemorating the groundbreaking. Pictured left to right: Shawn Cochran, Alex Dias, Yoshi Komura, Jorge Oliveira, Chuck Greene, Myriam Aerts, Chris Richards

AM/NS Calvert held a small ceremony Tuesday commemorating the recent groundbreaking for their new $775 million steelmaking facility in northern Mobile County. AM/NS Calvert announced the new $775 million steelmaking facility just in December and have already officially broken ground on the joint venture between ArcelorMittal and the Nippon Steel Corporation.

“Alabama and the steel industry go hand in hand, and I am proud to see continued growth through AM/NS Calvert’s $775 million expansion,” Gov. Kay Ivey said. “Shovels have officially hit the dirt, and I look forward to the advancements this project will bring. Alabama continues to prove to be the place for business and industry.”

Bill Sisson is the president and CEO of the Mobile Area Chamber of Commerce.

“When two of the leading steel companies – ArcelorMittal and Nippon Steel – make a significant investment such as this, the world takes notice,” Sisson said. “This announcement shows a great confidence in the Mobile area, and for that we are grateful. The capital investment and construction, along with the hundreds of permanent and in-direct jobs will benefit area suppliers and local families for years to come.”

Due to the ongoing COVID-19 crisis, the pomp and circumstance that would normally have occurred with an economic development groundbreaking of this magnitude were greatly reduced.

“While the team at AM/NS Calvert would prefer thanking each of our supporters who were critical to the approval of this project in-person, we look forward to celebrating this achievement when the new facility comes online in H1 2023,” said Jorge Oliveria, the CEO of AM/NS Calvert. “We certainly could not have gained approvals for this investment without the support of our government and community stakeholders.”

Economic developer Nicole Jones said: “ArcelorMittal and Nippon Steel’s joint venture construction of a new steelmaking facility in Calvert allows us to witness immediate results from terms outlined in the United States Mexico Canada trade agreement, specifically the requirement for the automobile industry to utilize more steel made in North America. Metals and advanced materials is one of our state’s dominant industries. Alabama Department of Commerce data from 2018 shows that primary metal manufacturing exports valued at nearly $1.6 billion, and fabricated metal manufacturing exports valued at $382 million. The direct and indirect jobs resulting from this project will provide significant economic benefits for south Alabama and our entire state.”

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Once completed, the planned facility will be capable of producing 1.5 metric tons of steel slabs for the hot strip mill and producing a broad spectrum of steel grades required for Calvert’s end-user markets. A metric ton is 1000 kilograms, which is the equivalent of 2,204.6 pounds or slightly over 1.1 tons.

Construction on the new facility is expected to take 24 months and the new facility is anticipated to create 200 direct and 100 indirect jobs in the community.

AM/NS Calvert is located in Calvert, Alabama, about 35 miles north of Mobile. Calvert in an unincorporated area straddling the Mobile and Washington County lines on the Tombigbee River. AM/NS Calvert is a 50-50 joint venture between ArcelorMittal and Nippon Steel Corporation.

The existing facility was built by Thyssenkrupp and purchased by ArcelorMittal and NSC in 2014, the plant has served the North America market since 2010 with the capacity to produce 5.3 million tons of flat-rolled carbon steel products annually. AM/NS Calvert is recognized as one of the most advanced steel finishing facilities in the world.

AM/NS Calvert’s facility spans 2,373 acres and includes a river terminal, hot strip mill, cold rolling mill, three hot-dip galvanizing lines, one continuous annealing line, rail yard and supporting infrastructure to make hot-rolled, hot-rolled pickled and oiled, cold-rolled sheet, and advanced coated steel products.

AM/NS Calvert and its 1,600-plus team members serve the automotive, construction, pipe and tube, service center and appliance/HVAC industries with an impressive portfolio of steel grades for high-value applications. AM/NS Calvert also helps ArcelorMittal to meet increasing OEM demand for advanced high strength steels that are needed to produce lighter-weight, more fuel-efficient vehicles.

The most modern technology in the world allows AM/NS Calvert to produce a quantity of steel product that would have taken in excess of 20,000 workers a generation ago, with a much higher quality finished product and far less environmental impact.

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Brandon Moseley is a former reporter at the Alabama Political Reporter.

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