“AM and NS need no explanation. And we chose Calvert because we wanted all of you to feel an ownership and engagement with the name. This is your plant, and Calvert is your town,” Lakshmi N. Mittal, chairman and CEO of ArcelorMittal, said in a released statement.
“We very much hope that AM/NS Calvert will become synonymous with the highest quality products and will build a strong reputation for Calvert – this plant and this town - with all our customers and stakeholders.”
ThyssenKrupp AG sold the facility, that cost $5 billion to build, in late November to ArcelorMittal and Nippon Steel and Sumitomo Metal Corp for $1.55 billion. It was purchased in a 50-50 joint venture partnership between the two companies.
Officials said the deal garnered all regulatory approvals needed Wednesday before the acquisition could be completed. The joint venture is expected to finance the deal through a combination of equity and debt. Neither of the parent companies is anticipating taking on any debt in their purchase of the facility.
Said to be one of the most modern plants of its kind, AM/NS Calvert is capable of producing 5.3 million tons of steel in its hot strip mill. One million of its total capacity is used for stainless steel products made by Outokumpu. There is also cold rolling mill and four hot dip galvanizing lines
As a condition of the deal, the partnered companies agreed to buy 2 million tons of steel slabs annually for six years from ThyssenKrupp Companhia Siderúrgica do Atlântico in Rio de Janeiro, Brazil.