Steel giant ArcelorMittal is investing $1.2 billion to build an Alabama mill slated to produce advanced steel by 2027 for hybrid and electric vehicle motors to feed into the U.S. supply chain.

The plant will produce NOES, which is essential for manufacturing larger vehicles such as full-size pickups and SUVs.

The decision to wind the business down will directly affect the company’s Newcastle and Vereeniging Works, and the ArcelorMittal Rail and Structural subsidiary, the company said. ArcelorMittal ...