ArcelorMittal S.A. (MT – Free Report) announced to progress with its plans to build a non-grain-oriented electrical steel (“NOES”) manufacturing facility in Alabama. This facility will be wholly-owned by MT. It is visioned to have a capacity to produce up to 150,000 metric tons of NOES annually. The $1.2 billion project aims to reduce U.S. dependency on electrical steel imports through the expansion of domestic NOES production.
As NOES has been identified as a critical material for producing electric motors and a broad range of energy technologies and applications, it is expected to pave the way for innovation in this industry. Producing NOES would also require specialized technical expertise, advanced manufacturing capabilities and rigorous quality control. This project will support the growth of critical industries like electric vehicles and energy-efficient technologies while creating high-quality jobs for the people of Alabama.
With the commencement of construction (expected in second-half 2025), up to 1,300 jobs will be created. For the plant’s operation, more than 200 permanent positions will arise, therefore strengthening the local economy.
The new plant will help in meeting growing demand needs for high-quality electrical steels. It will also ensure support to manufacturers by providing a steady domestic supply of high-quality NOES and overcoming supply-chain challenges.
ArcelorMittal Calvert plant includes plans of setting up an annealing pickling line, cold-rolling mill, annealing coating line, packaging and slitter line, and additional ancillary equipment, needed for specialized electrical steel manufacturing operations.
MT stock has lost 2.3% in the past year compared with the 24.1% slump in the industry.
Image Source: Zacks Investment Research
MT’s Zacks Rank and Key Picks
MT currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Ingevity Corporation (NGVT – Free Report) , Carpenter Technology Corporation (CRS – Free Report) and Methanex Corp. (MEOH – Free Report) . While NGVT sports a Zacks Rank #1 (Strong Buy), CRS and MEOH carries a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Ingevity’s current-year earnings is pegged at $2.75 per share. NGVT beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with the average earnings surprise being 95.4%.
The Zacks Consensus Estimate for Carpenter Technology’s current fiscal-year earnings is pegged at $6.83 per share. CRS beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average earnings surprise being 15.7%. Its shares have soared 195.5% in the past year.
The Zacks Consensus Estimate for Methanex’s current-year earnings is pegged at $4.2 per share. MEOH surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with an average earnings surprise of 85.2%. The stock has gained 8.7% in the past year.
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