ArcelorMittal awards the construction of the Gijón electric steel plant, which will begin in early 2024

by time news

2023-11-28 18:05:00

ArcelorMittal Asturias has signed a contract with the Basque industrial engineering company Sarralle for the construction of the new electric arc furnace in Gijón. The project is part of ArcelorMittal’s plan for the decarbonization of its activities in Asturias, which also includes a direct reduction plant for iron ore with hydrogen (DRI system) which, at the moment, has not been approved.

The civil work on the electric furnace will begin early next year. The new plant will have an annual production capacity of 1.1 million tons of steel. ArcelorMittal expects it to be operational in the fourth quarter of 2025. At that time it will be in a position to produce low-carbon steel, intended for the long products sector, and more specifically for the manufacture of rail and wire rod, “which will place the plant in an extremely competitive position, particularly in sectors with strict carbon footprint criteria for contracts with the public Administration,” highlighted sources from the multinational steel company. Currently, these products are produced through the blast furnace route. Within the framework of the project, Sarralle will also install a dust collection system, as well as a residual heat recovery system, in order to maximize the energy efficiency of the new electric oven.

The project is part of ArcelorMittal Europe’s commitment to reduce its CO2 emissions by 35% by 2030.

“This is an important component of the decarbonization program for the Company’s steel activities in Spain. Therefore, we want to convey to all parties involved our gratitude for their continued cooperation in this project,” declared Philippe Meyran, CEO of ArcelorMittal Asturias, during the contract signing ceremony with Sarralle.

Elías Gonzalez, CEO of Sarralle, stated: “This is a very special project for us. This is the first decarbonization project in Spain that will be carried out with Spanish technology. “It constitutes an extremely important step for the future of the steel industry in Spain, oriented towards products with very high added value.”

Jordi Torné, CEO of Long Products at ArcelorMittal Asturias, said: “This project places the Long Products division in Asturias at the forefront of decarbonization. The installation of this latest generation technology will allow us to produce rail and wire rod with high added value, consolidating a sustainable future for our activity, with a process that incorporates the highest safety standards.”

The European Union’s Strategy for Smart and Sustainable Mobility foresees that both high-speed rail traffic and rail freight traffic will register a growth of 50% between now and 2030. Forecasts for 2050 suggest that high-speed rail traffic will grow by 50% between now and 2030. Speed ​​will have tripled and freight traffic will have increased by 100%. According to Arceror, the new facility in Gijón will be well positioned to respond to the growing demand for rail, and in particular rail produced with low-carbon steel, within the framework of the European Green Deal.

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