Steel company ArcelorMittal is to acquire an 80% shareholding in voestalpine’s Hot Briquetted Iron (HBI) plant located in Corpus Christi, Texas, valued at $1 billion.
voestalpine steel plant, Corpus Christi, Texas. Credit: voestalpine
voestalpine steel plant, Corpus Christi, Texas. Credit: voestalpine
The state-of-the-art plant, which was opened in October 2016, is one of the largest of its kind in the world. It 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), but which can also be used in blast furnaces, resulting in lower coke consumption.
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In parallel with the transaction, ArcelorMittal has signed a long-term off-take agreement 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 remaining balance of production will be delivered to third parties under existing supply contracts, and to ArcelorMittal facilities.
ArcelorMittal CEO, Aditya Mittal, said: “This is a compelling strategic acquisition for our company. It accelerates both our progression into producing high-quality metallic feedstock for EAFs and our global decarbonisation journey. The facility is world-class and is ideally located, with its own deep-water port. There is also unused land on the site which provides interesting options for further development."
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The Corpus Christi facility is located in an optimal coastal position with direct access to a broad and deep shipping channel which enables cost-effective transportation to the Americas and Europe.
The plant has the potential to transition to 100% hydrogen, with the Texas coast presenting advantageous weather conditions to produce renewable energy powered green hydrogen. DRI/HBI is expected to play a prominent role in the decarbonisation of the steel industry, a process ArcelorMittal intends to lead.
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