Luxembourg-based ArcelorMittal advances its electric arc furnace (EAF) project in Dunkirk, France. The 2 million-ton-per-year recycled melt shop marks a major step in decarbonizing European steel production. French President Emmanuel Macron visited the site to review progress and support industrial modernization.
ArcelorMittal plans to invest €1.3 billion ($1.55 billion) to replace blast furnace/basic oxygen furnace (BOF) production with EAF technology. In addition to recycled steel, direct-reduced iron (DRI) will supply the Dunkirk EAF. The project paused in late 2024 due to unfavorable European policy and energy conditions, particularly for green hydrogen and gas-based DRI.
The company affirmed commitment to the project in 2025, emphasizing cooperation with the French government. ArcelorMittal anticipates the EAF startup in 2029. Improved policy measures, including scrutiny of imports and enforcement of the Carbon Border Adjustment Mechanism (CBAM), create conditions conducive to low-carbon steel production in Europe.
ArcelorMittal France EAF Project Advances Amid Policy Support
ArcelorMittal’s France EAF project advances as European policies increasingly protect local steelmakers. New tariff-rate quotas and CBAM enforcement mitigate unfair import competition. These measures reinforce the economics of large-scale EAF production in Dunkirk.
The company highlights the importance of government collaboration. CEO Aditya Mittal thanked Macron and officials for supporting market-defense mechanisms that benefit European steel. Meanwhile, CEO Geert van Poelvoorde emphasized that policy improvements enable successful EAF deployment.
European energy and market conditions now allow the production of both recycled steel and DRI, essential for low-carbon steelmaking. ArcelorMittal’s EAF will reduce carbon emissions significantly, advancing its decarbonization strategy across its 14 European steelmaking operations.
EAF Technology Key to European Steel Decarbonization
EAF technology is central to reducing CO₂ emissions in steel production. By replacing BOF with EAFs and using recycled steel and DRI, ArcelorMittal targets sustainable output. The Dunkirk facility exemplifies Europe’s shift toward cleaner, competitive steel manufacturing.
The project also signals confidence in policy frameworks such as CBAM and tariff measures. These tools provide economic viability for low-carbon steel projects while encouraging industrial modernization. ArcelorMittal’s investment may inspire further European steel decarbonization initiatives.
SuperMetalPrice Commentary:
ArcelorMittal’s Dunkirk EAF project demonstrates Europe’s commitment to low-carbon steel. Strategic government support, CBAM enforcement, and import controls align to create favorable conditions. Investors and steel buyers should monitor Dunkirk as a benchmark for large-scale decarbonized steel production in Europe. By 2029, this EAF could set new standards for sustainable output and competitive advantage in the European market.
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