In what will likely be a boon to the Italian steel industry, Ukrainian metals and mining group Metinvest and an Italian equipment provider operating under the name Metinvest Adria recently signed an agreement to construct a new steel plant at the port city Piombino, in western Italy. Metinvest stated that the two parties signed the agreement in Rome at the Italian Ministry of Enterprises and Made in Italy on February 19, noting that the deal will come into effect in H2.
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The Plant Should Come Online in 2027
In November, news agency Interfax-Ukraine stated that the plant will be able to produce up to 2.7 million metric tons of hot rolled coil per year using electric arc furnace technology. They also announced that the tentative commissioning of the plant is slated for 2027. Sources at Metinvest and Danieli were unavailable for comment, despite several attempts.
The commercial harbor of Piombino, Italy. Credit: Uwe
The group did publicly note that Metinvest’s operating assets in Ukraine will partly provide ferrous scrap, cast iron and direct reduced iron for the planned facility, which currently has a projected cost of around €2.5 billion.
“The construction of the new Piombino steel plant will be financed mainly through funds collected from international financial and credit institutions, in addition to the equity of shareholders,” the ministry said. They added, “The project is intended to serve as a model for the future modernization of the Metinvest plants in Zaporizhzhia and Kamianske, Ukraine.”
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Metinvest a Growing Presence in Italy’s Steel Industry
Piombino is on the border between the Tyrrhenian and Ligurian Seas, about 170 kilometers south of Florence. Information on Italy’s Ministry of Infrastructure and Transport indicated that Italian steel group Lucchini, ArcelorMittal and Techint also dispatch finished material from the city’s port.
It is also worth noting that the planned flats producer is not Metinvest’s first foray into the Italian steel industry. According to information on the company’s website, Metinvest Trametal, which lies in the Friuli Venezia Giulia region, has a 600,000 metric ton per year capacity to roll plate in 4-180mm to a maximum width of 3200mm.
Ferriera Valsider, in the Veneto region, can roll up to 400,000 metric tons per year of heavy plate in 8-200mm gauges and width up to 3,000mm, and 600,000 metric tons annually of HRC in 1.8-25mm gauges to a maximum width 1,555mm.
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