ArcelorMittal Europe has officially withdrawn from its planned DRI and EAF investments at its Bremen and Eisenhuttenstadt sites, citing unfavorable market, energy, and policy conditions. Despite a EUR 1.3 bln (USD 1.49 bln) funding agreement with the German government, the company confirmed it cannot meet the required construction timeline and has formally notified authorities.
Instead, ArcelorMittal will focus on detailed planning for electric arc furnace (EAF) construction at the two sites, aligning with its phased decarbonization strategy.
The company reaffirmed its commitment to reducing emissions but noted growing challenges in achieving its 2030 targets due to slow energy transition progress, high electricity costs, particularly in Germany, and rising steel imports amid weak demand in Europe.
Future EAF investments will be directed to regions offering stable access to low-cost electricity, such as Dunkirk, France.
CEO Geert van Poelvoorde emphasized the need for stronger demand for EU-produced steel and urgent action to curb flat product imports, which he said must be halved to support the industry’s green transition.
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