On Tuesday, ArcelorMittal SA and Nippon Steel Corp will spend $775 million to build an electric arc furnace at their U.S. joint venture in Alabama.

They plan on starting a production during the first half of 2023, said Nippon Steel.

The new furnace will have an annual capacity of 1.5 million metric tonnes and will produce hot-rolled, cold-rolled and coated steel sheets.

Calvert currently produces steel sheet products by processing semi-finished products, or slabs, procured from local and overseas suppliers.

In a statement, Nippon Steel said the new furnace will be able to manufacture some of the slabs needed to produce its steel sheet products on its own, which would shorten lead time and improve productivity. The new furnace will also produce slabs for automotive flat products, including advanced high-tensile steel sheets.

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Tags: annual capacity, ArcelorMittal SA, build, coated, cold rolled, electric arc furnace, furnace, hot rolled, joint venture, Nippon Steel, Nippon Steel Corp, processed semi finished products, produce, production, slabs, steel sheets, U.S., US