ArcelorMittal, a global steel producer based in Luxembourg, has started the construction of a previously announced electric arc furnace (EAF) for long products at its Gijón, Spain, campus, and the EAF facility is expected to begin ramping up in the first quarter of 2026.
The nearly $230 million investment will be the first major EAF project to be implemented within the company’s decarbonization program in Europe and “will constitute the first step toward low-carbon emissions steelmaking” in the Asturias region of Spain.
“The reduction in CO2 emissions is achieved by transitioning from a process in which the main raw material was hot metal produced in [a] blast furnace using fossil fuels to a process where the main inputs are scrap and direct reduced iron [DRI] and [that] uses electricity [that] will be generated from wind and solar power, when available,” ArcelorMittal says.
The president of the principality of Asturias and other local and regional officials attended the groundbreaking ceremony in Gijón.
“This investment will lead to the implementation in Gijón of the latest technology for EAFs and will contribute to our ability to meet the growing demand for low-carbon emissions rails and wire rod from our customers in the automotive, construction and rail infrastructure sectors, among others—particularly in sectors with stringent carbon criteria for public procurement contracts," Sanjay Samaddar, CEO of ArcelorMittal Europe – Long Product, said at the event.
Initial steel production via the new EAF will lead to a reduction in CO2 emissions of more than 35 percent, the steelmaker says, and the reduction in emissions could reach 1 million metric tons of CO2 equivalent per year once the transition phase has been completed.
Philippe Meyran, CEO of the ArcelorMittal Asturias Cluster operating region, expressed his appreciation for the support received from stakeholders involved in the project. “We have achieved this milestone thanks to the support of the public administrations, of our customers, of our partners, of the entire project team," he said. "We are progressing toward our goal to have a more sustainable industry here in Asturias.”
ArcelorMittal says the project is the first large investment undertaken as part of ArcelorMittal’s decarbonization program in Europe. The company has announced EAF conversion or expansion projects in several European nations, including Belgium, France and Luxembourg as well as in Canada.
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