Nippon Steel has reached a deal to divest its share in its AM/NS Calvert joint venture with ArcelorMittal if its planned acquisition of U.S. Steel goes through.
The Belgium-based steelmaker and the Tokyo-based steelmaker have partnered since 2014 to operate the Alabama mini-mill that can make up to 5.3 million tons of flat-rolled carbon steel products a year.
Nippon Steel is looking to divest to satisfy antitrust regulators if it buys U.S. Steel, which operates steel mills around the country, including in Northwest Indiana.
ArcelorMittal would pay Nippon a nominal $1 to own the steel mill outright. Nippon Steel will forgive loans and inject cash into the mill, with its contributions estimated to be in the range of $900 million.
The deal is subject to the pending U.S. Steel acquisition going through.
"There are no assurances or guarantees that NSC will complete its acquisition of US Steel," ArcelorMittal said in a news release. "Should NSC not complete its acquisition of US Steel, then the Agreement will not come into effect and the AM/NS Calvert Joint Venture will continue."
Thyssen Krupp USA originally opened the steel mill in 2010. It includes a hot strip mill, a continuous pickling line, a coupled pickle line-tandem cold mill, coating lines, galvazining lines and aluminizing lines. It is building an electric arc furnace and considering building a second electric arc furn and non-grain oriented electrical steels line.
The mill makes advanced high-strength steels, line pipe and stainless steel products.
It was the only steel mill in the United States that ArcelorMittal decided to retain after selling most of its U.S. assets to Cleveland-Cliffs in late 2020. While the steelmaker maintains a North American headquarters in Schererville and a Global R&D Center in East Chicago, most of its remaining North American steelmaking operations are in Canada.
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