A strategic use of a static synchronous compensator (STATCOM) for providing dynamic reactive power management of a hot rolling mill plant along with active mitigation of harmonics is considered in this article. More specifically, the behavior of a cascaded H-bridge (CHB) converter-based STATCOM is assessed. The impact of the steel to be milled and the specific features of the plant on the design of the STATCOM is discussed. The proposed strategy is analyzed from the point of view of reactive power flow management, active power loss reduction, and voltage control at the coupling point, as well as harmonics reduction and decrease of unscheduled shutdowns in the event of a trip in the passive filtering system. The article is based on real plant measurements, simulation tests, and results from an experimental platform built at scale, and represents the first stage of an ambitious plan to renew this type of plants aimed at transforming them into active elements for electrical energy management. Index Terms-Cascaded H-bridge converter (CHB), filtering banks, finishing mill, hot rolling mill, power system harmonics, roughing mill, static synchronous compensator (STATCOM), steel. I. INTRODUCTION S TEEL industry is considered to be an energy-intensive industry [1]. Efficient use of energy plays a strategic role in steel industry, which is the industrial sector with the highest energy demand in numerous countries. Energy consumption accounts for between 15% and 20% of the operating costs of a steel plant and has direct implications on other costs, e.g., those associated with the emission of greenhouse gases (GHG). More