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ArcelorMittal announced in May 2024 that it planned to invest in an electric arc furnace at its Dunkirk plant, and formally confirmed the investment on 10 February 2026. French President Emmanuel Macron, European Commissioner Stéphane Séjourné and several ministers were present for the announcement, which involves a total planned investment of €1.3 billion.
The company says the project will allow the construction of an electric arc furnace with a capacity of two million tonnes a year, due to come on stream in 2029. The aim is to produce steel without coal, whose combustion generates significant CO₂ emissions and contributes to global warming.
The investment in the electric arc furnace forms part of a strategy outlined by the company to shift several of the Group’s European steelworks from coal to hydrogen. The Dunkirk site is a significant source of pollution, accounting for around 15% of CO₂ emissions from French industry.
Up to 50% of the investment will be funded through the energy savings certificate scheme (CEE), a government-regulated mechanism that requires energy suppliers to support projects designed to cut energy consumption.
Investment delayed
However, ArcelorMittal had long been reluctant to formalise its investment pledge. When it was first announced in May 2024, the steelmaker said confirmation would come “after the summer”.
That confirmation ultimately arrived more than a year and a half later. In November 2024, the company justified the delay by saying it was waiting for “additional measures to protect European steel before committing to any investment”.
Some of those measures have since materialised, notably with the Carbon Border Adjustment Mechanism (CBAM) entering its definitive phase on 1 January 2026.
“The decision to build an electric arc furnace at ArcelorMittal Dunkerque, in order to produce low-carbon steel on a large scale for our customers, has been made possible by the conditions now in place to bring this project to fruition,” said Geert van Poelvoorde, chief executive of ArcelorMittal Europe, in a statement. “The new tariff quota will help stem the flow of unfair imports into the EU, while the MACF is now operational to create a more level playing field for European producers.”
Long demanded by Europe’s steelmakers, CBAM is designed to subject goods imported into the EU’s customs territory to carbon pricing equivalent to that faced by European manufacturers.
Support from the French government
The project has also received support from the French government. In 2023, ArcelorMittal was granted confirmation of €850 million in subsidies to help decarbonise its Dunkirk and Fos-sur-Mer sites.
A second plant that Emmanuel Macron has not forgotten. During his visit to Dunkirk, the French president called on the group to “see the adventure through to the end” and “build the second furnace, continue with hydrogen”, as well as giving “a future to Fos-sur-Mer”, ArcelorMittal’s other major French site.
The formal signing of the €1.3 billion investment appears to have reassured the French president that France’s leading steelmaker, and Europe’s largest, intends to remain in the country.
That reassurance is not shared by everyone. Gaétan Lecocq, a CGT union representative in Dunkirk, said he was “waiting for something concrete” and for “a firm date” for the construction of the electric furnace. When ArcelorMittal announced the investment in 2024, it also confirmed it would press ahead with plans to cut 638 jobs in France.
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