MT - ArcelorMittal to acquire majority stake in voestalpine's state-of-the-art HBI facility in Texas

ArcelorMittal (NYSE:MT) to acquire an 80% shareholding in voestalpine’s world-class Hot Briquetted Iron plant located in Corpus Christi, Texas for transaction values of $1B. voestalpine will retain the remaining 20%. The state-of-the-art plant, which was opened in October 2016, has an annual capacity of two million tonnes of HBI, a high-quality feedstock made through the direct reduction of iron ore which is used to produce high-quality steel grades in an electric arc furnace (‘EAF’). The use of natural gas to directly reduce iron ore pellets into HBI which means that DRI-EAF steelmaking carries a significantly lower carbon footprint than blast furnace-basic oxygen furnace steelmaking. Concurrently, ArcelorMittal has inked a long-term offtake pact with voestalpine to supply an annual volume of HBI commensurate to voestalpine’s equity stake to its steel mills in Donawitz and Linz, Austria. The balance of production will be delivered to third parties under existing supply contracts, and to ArcelorMittal

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ArcelorMittal to acquire majority stake in voestalpine’s state-of-the-art HBI facility in Texas