ArcelorMittal has confirmed plans to build a new electric arc furnace (EAF) at its steelmaking facility in Dunkirk, marking a €1.3 billion investment aimed at accelerating the decarbonisation of steel production in France. The project was announced during a visit to the site by French President Emmanuel Macron, accompanied by senior government officials and company leadership.
The new furnace, expected to begin operations in 2029, will have an annual production capacity of approximately two million tonnes of steel. Compared with traditional blast furnace production, the EAF process is projected to reduce carbon emissions by nearly three times, supporting ArcelorMittal’s broader strategy to lower emissions across its European operations.
Funding support for the project will include Energy Efficiency Certificates under France’s regulatory framework promoting energy savings and emissions reduction, covering roughly half of the investment value. The company said recent policy developments within the European Union have improved the outlook for long-term industrial investments.
Measures proposed by the European Commission, including updates to tariff rate quotas to address unfair imports and reforms to the Carbon Border Adjustment Mechanism, are expected to create more balanced market conditions for European steelmakers. In addition, ArcelorMittal France recently secured a long-term electricity supply agreement with EDF to access competitive low-carbon power, strengthening the viability of the Dunkirk project.
Aditya Mittal, Chief Executive Officer of ArcelorMittal, said the investment demonstrates the company’s long-term commitment to France and Europe’s industrial future. He noted that government support and policy clarity were key factors in moving forward with the project.
Geert van Poelvoorde, CEO of ArcelorMittal Europe, said the new facility will help produce low-emission steel at scale for customers across automotive, construction and engineering sectors. Separately, at the nearby Mardyck plant, ArcelorMittal is preparing to start a new electrical steel production unit following a €500 million investment, expanding its product range to support electrification in automotive and industrial applications.
ArcelorMittal operates in more than 60 countries with steelmaking facilities in 14 nations. The company supplies steel to industries including automotive, construction and machinery, and continues to invest in technologies that reduce emissions while improving efficiency and product performance.
