Key Moments
- ArcelorMittal confirmed a €1.3 billion investment in a new electric arc furnace at its Dunkirk plant. The company first announced the plan in May 2024.
- The furnace will produce up to two million tonnes of steel per year. The company expects it to start operations in 2029.
- France’s energy savings certificate scheme (CEE) could finance up to 50% of the project. The investment also supports ArcelorMittal’s wider shift from coal to hydrogen in Europe.
Strategic Investment in Electric Arc Technology
ArcelorMittal has committed to transforming its Dunkirk plant. On 10 February 2026, the group confirmed it will invest €1.3 billion in an electric arc furnace. Earlier, in May 2024, it had signaled plans for the project.
The company announced the decision during an event attended by French President Emmanuel Macron and senior EU officials. The new furnace will produce two million tonnes of steel per year. Moreover, the company aims to launch production in 2029.
This project marks a shift away from coal-based steelmaking. Instead, the company plans to use cleaner technology. As a result, it expects to cut CO₂ emissions significantly.
Decarbonization and Shift Away From Coal
The Dunkirk investment forms part of ArcelorMittal’s broader European strategy. The group plans to replace coal-based processes with hydrogen and electric technologies. Notably, the Dunkirk plant accounts for about 15% of France’s industrial CO₂ emissions.
By changing its production method, the company aims to scale up low-carbon steel output. At the same time, the project aligns with EU policies that target heavy industry emissions. Therefore, it also strengthens the company’s position in a changing regulatory environment.
Financing Structure and Policy Support
ArcelorMittal says the CEE scheme could finance up to half of the €1.3 billion investment. This state-backed program requires energy suppliers to fund projects that reduce energy use. As a result, it plays a key role in industrial decarbonization.
In addition, the French government has already granted €850 million in subsidies. These funds support decarbonization efforts at Dunkirk and Fos-sur-Mer. Consequently, public backing has reduced the financial burden of the transition.
| Element | Detail |
|---|---|
| Total planned investment | €1.3 billion |
| Technology | Electric arc furnace |
| Planned annual capacity | 2 million tonnes |
| Target start-up | 2029 |
| Potential CEE funding share | Up to 50% |
| CO₂ share of Dunkirk site | Around 15% of French industrial emissions |
| Earlier decarbonization subsidies (2023) | €850 million for Dunkirk and Fos-sur-Mer |
Delayed Commitment and Regulatory Backdrop
Although ArcelorMittal first announced the project in May 2024, it delayed its final decision. At the time, the group said it would confirm its plans after the summer. However, the official approval came more than a year later.
In November 2024, the company explained the delay. It said it needed stronger EU trade protections before committing to the investment. Specifically, it wanted clearer safeguards against unfair imports.
Since then, several measures have taken effect. Most importantly, the Carbon Border Adjustment Mechanism (CBAM) entered its definitive phase on 1 January 2026. This system applies a carbon cost to imports equivalent to that paid by EU producers. As a result, it aims to create fairer competition.
Geert van Poelvoorde, CEO of ArcelorMittal Europe, said the new conditions made the investment possible. He added that updated tariff quotas and CBAM help protect European steelmakers while supporting low-carbon production.
French Government’s Role and Expectations
The French government has strongly supported the project. Officials see it as vital for maintaining industrial capacity in France. Therefore, they have highlighted the investment as a strategic milestone.
During his visit to Dunkirk, President Macron urged the company to go further. He called on ArcelorMittal to build a second furnace and continue investing in hydrogen. In addition, he stressed the importance of securing the future of the Fos-sur-Mer plant.
The €1.3 billion commitment signals that ArcelorMittal intends to maintain its industrial presence in France. It also underlines the group’s role as Europe’s largest steelmaker.
Union Concerns and Jobs Outlook
Despite the scale of the investment, unions remain cautious. Gaétan Lecocq, a CGT representative in Dunkirk, said he is waiting for concrete steps and a firm construction timeline.
Concerns also stem from earlier restructuring plans. In 2024, when the company first presented the project, it also confirmed plans to cut 638 jobs in France. As a result, some workers question the long-term employment impact.
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