ArcelorMittal, Europe’s biggest steel producer, said on 5 November 2026 that its electric arc furnace programme in Spain and France remained on track to add approximately 3.9 million tonnes of incremental steelmaking capacity by 2029. The projects are in Gijón and Sestao in Spain and Dunkirk in France, expanding Europe’s electric-steelmaking base amid pressure from energy and carbon costs.
At Gijón, a 1.1-million-tonne long-products furnace was scheduled for commissioning in the final quarter of 2026, with production ramp-up continuing through 2027. Sestao’s 1.6-million-tonne expansion was also scheduled for commissioning in the final quarter of 2026, followed by ramp-up through 2027.
The 2-million-tonne flat-products furnace at Dunkirk has entered execution. ArcelorMittal’s estimated incremental capacity is not the simple sum of the three projects’ nominal capacities, because existing production arrangements and replacement capacity affect the calculation. The planned volumes should not be counted as fully operational before commissioning and stable production are achieved.
Energy costs and utilisation remain key
Electric arc furnaces melt scrap and, where necessary, other metallic inputs using electricity, rather than relying primarily on conventional blast-furnace ironmaking. Their emissions depend on scrap availability, the source of electricity and the upstream production of iron-bearing feedstock.
ArcelorMittal said higher European electricity and carbon costs weighed on its third-quarter earnings, while improvements in steel selling prices had not yet fully reflected those cost increases. Adjusted operating earnings before interest, tax, depreciation and amortisation were approximately €1.80 billion, up from a year earlier but slightly below the previous quarter.
The company said the European Union’s recent trade measures were beginning to reduce import penetration and support domestic capacity use. European flat-steel shipments rose sequentially despite what would normally be a seasonal slowdown, and ArcelorMittal expected further increases in the final quarter.
Competitively priced power, suitable scrap, grid connections and flexible production arrangements are increasingly important to furnace utilisation and margins. Trade and other industrial-policy measures may improve the commercial environment for European furnaces but do not guarantee returns on individual projects. Electricity contracts, carbon regulation, imported steel competition and scrap prices will continue to affect the competitiveness of the new production routes.
Gijón and Sestao face near-term commissioning and production ramp-up risks, while Dunkirk must progress through execution before contributing its planned volumes. The investments’ longer-term significance will depend on producers making steel reliably at costs industrial customers can sustain.
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