MEPS’s global steel production and capacity round-up

ArcelorMittal’s decarbonisation investments, closures at Cleveland-Cliffs and plans for stainless steel melting in Turkey all feature in MEPS International’s May global steel production and capacity round-up.

Europe

ArcelorMittal

ArcelorMittal has announced that it will resume its decarbonisation plans in France after the summer, confirming EUR1.2 billion investment in the construction of an EAF in Dunkirk.

The newly announced investment takes the steelmaker’s overall investment in its French operations to EUR2bn following its recently announced investments in Dunkirk (EUR254m) and Fos-sur-Mer (EUR53m), respectively.

Meanwhile, the new electrical steel production unit is under construction in Mardyck (EUR500m investment). Completion of that project is due at the end of this year.

ArcelorMittal had delayed investment due to what it described as the European steel industry’s “worst crisis since the financial crisis in 2009”.

However, the European Commission’s Steel and Metals Action Plan, announced in March 2025, has provided optimism about the implementation of efficient trade defence and carbon border adjustment mechanisms (CBAM), the steelmaker said.

It has requested that the European Commission limits imports to 15% of market demand.

Salzgitter Flachstahl

Salzgitter Flachstahl has revealed plans to install a new walking beam furnace and waste gas heat recovery system at its hot strip mill in Salzgitter, Germany.

The project, due for completion in 2028, is part of the company’s drive to reduce energy use and carbon emissions.

Supplied by Tenova Italimpianti, the new walking beam furnace is expected to cut slab heating energy consumption by up to 30%.

Saritas Celik

Saritas Celik confirms it is moving ahead with construction of a new stainless steel production facility in Yalova, Turkey, with full completion targeted for 2030.

The project, launched with land acquisition in 2024, will be implemented in four stages.

Initial phases, including cold rolling mills with a 400,000 tonnes per year capacity, will be commissioned by 2027.

A hot rolling line is scheduled for 2028, raising total capacity to 800,000 tonnes annually.

A melt shop, enabling fully integrated production from raw input to finished product, will follow by 2030.

North America

Cleveland-Cliffs

Cleveland-Cliffs has announced plans to indefinitely idle several non-core steelmaking operations by June 30, 2025, citing weak demand and persistent losses.

The affected facilities include an EAF melt shop in Steelton, Pennsylvania, a BOF and compact strip mill in Riverdale, Illinois, and downstream plate finishing plant in Conshohocken, Pennsylvania.

The steelmaker’s planned closures are part of a drive to reduce fixed costs and refocus on automotive steel production. The company expects this action to lead to annualised savings of up to USD350 million.

Asia

Shagang Group

The Shagang Group has ordered a second cold rolling mill for its facility in Jiangsu province, China.

The Chinese steelmaker’s new mill will produce 80,000 tonnes per year of non-grain oriented electrical steel, primarily for use in high-performance electric motors for the automotive sector.

The new line can roll strip down to 0.1mm thickness across a 1,350mm width, ensuring high surface quality and flatness. Commissioning is expected in 2026.

Chiyoda Steel

Japan’s Chiyoda Steel has commenced the installation of a new ladle furnace, single-strand caster and endless casting rebar rolling mill at its facility in Ayase, north of Tokyo.

The new equipment will produce up to 430,000 tonnes of rebar annually in diameters ranging from 10mm to 35mm. It will be capable of rebar production from liquid steel in under 15 minutes. Chiyoda Steel plans to complete commissioning later this year.

Godo Steel

Godo Steel has contracted equipment manufacturer Danieli to modernise the medium section rolling mill located at its Himeji plant, in Japan.

As part of the USD90 million investment, the company will install a pair of shiftable double-stand reversing mills.

The new equipment is scheduled to enter service in late 2028. It will replace the existing equipment that has been in service at the site since 1938.