ArcelorMittal Invests €1.2 Billion in Dunkirk Electric Arc Furnace Amid EU and French Support

ArcelorMittal 

Restarting Decarbonization with Strategic Government Backing

ArcelorMittal has reaffirmed its commitment to decarbonize its French industrial operations, announcing a €1.2 billion investment to construct the first electric arc furnace (EAF) at its Dunkirk site. The company’s renewed push aligns with strong support from the French government and new EU industrial policy initiatives aimed at safeguarding Europe’s steel sector.

The global steelmaker had temporarily postponed parts of its decarbonization plan earlier this year, citing the deepest industry crisis since 2009. However, recent developments, including the EU Steel and Metals Action Plan (March 2025), have revived optimism. The plan includes reforms to the Carbon Border Adjustment Mechanism (CBAM) and aims to cap steel imports at 15% of EU demand, supporting local producers.

France's updated safeguard measures, which took effect on April 1, mark the first concrete step toward internal market protection. ArcelorMittal now plans to restart its European decarbonization program after the summer, with the Dunkirk EAF at the center of this effort.

€2 Billion Total Investment Signals Long-Term Commitment

In addition to the flagship Dunkirk project, ArcelorMittal has outlined a broader investment strategy in France:

• €254 million for modernization at Dunkirk
• €53 million for the Fos-sur-Mer facility
• €500 million for a new production line in Mardik by year-end

With these projects, ArcelorMittal’s total investment in France will reach €2 billion, reinforcing its commitment to a dynamic and sustainable steel industry in the country.

Despite the economic headwinds, ArcelorMittal has maintained relatively stable production. In 2024, the company produced 57.9 million tons of steel (-0.3% y/y) and 42.4 million tons of iron ore (+0.9% y/y). Steel shipments fell 2.3% year-on-year to 54.3 million tonnes, while iron ore shipments (from AMMC and Liberia) remained stable at 26.4 million tonnes.

Operating in 60 countries with production assets in 18, ArcelorMittal remains one of the world's largest steel and mining companies. Its renewed investment drive in France represents a key pillar of its European decarbonization roadmap, supported by both domestic and EU-level policy reforms.