ArcelorMittal (NYSE:MT) is one of the dirt cheap stocks to buy now. On February 10, ArcelorMittal officially confirmed a €1.3 billion investment to construct a new electric arc furnace/EAF at its steelmaking facility in Dunkirk, France. This move marks a milestone in the company’s decarbonization efforts, as the new EAF is expected to produce steel with 3x less CO2 than traditional blast furnaces.
Scheduled to start up in 2029 with a 2-million-tonne capacity, the project will receive 50% of its funding through Energy Efficiency Certificates, a regulatory mechanism supported by the French government to promote energy savings. The decision to proceed was driven by a strengthening of European trade policies and the securing of a long-term contract with EDF for competitive, low-carbon electricity.
ArcelorMittal executives highlighted recent European Commission proposals, such as the Tariff Rate Quota and the Carbon Border Adjustment Mechanism, as critical factors in restoring fair competition against unfair imports. These regulatory developments provided the necessary confidence to commit to the large-scale production of low-carbon steel. Additionally, ArcelorMittal is launching a new €500 million electrical steel production unit in nearby Mardyck this quarter.
ArcelorMittal, together with its subsidiaries, operates as an integrated steel and mining company in the Americas, Europe, Asia, and Africa.
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