Metinvest and Danieli signed a joint -stock agreement for a new environmentally friendly steel plant in Italy

The Ukrainian steel group Metinvest and the Italian supplier of Danieli equipment signed a joint -stock agreement on the construction of a new environmentally friendly plant in Italy, the Ukrainian manufacturer said on Wednesday February 19.
The agreement will be regulated by the joint partnership of two companies in Metinvest Adria - a project company for the construction and operation of an environmentally friendly steel -rolling plant on a steel site in Pyombino (Tuscan, Italy), Metinvest said.

The new green steel production plant will operate on the basis of the electric -arc furnace (EAF) and will have a capacity of 2.7 million tons of hot rolled roll per year. It is expected that the total investment will be € 2.5 billion ($ 2.6 billion), FastMarkets previously reported.

Metinvest added that the construction of the plant would be funding mainly at the expense of funds attracted from international financial and credit organizations, as well as their own capital of shareholders.

It was expected that the project would also be supported by grants of the Italian government.

According to Metinvest, the new enterprise will be used processed materials, including scrap, cast iron and iron iron iron, which will be partially supplied from Ukrainian enterprises of Metinvest.

The Ukrainian manufacturer added that the signed agreement formalizes the process of joint management, decision -making and financing, which will facilitate the construction of a new plant.

It is expected that the agreement will enter into force in the second half of 2025 after the fulfillment of all previous conditions, including obtaining the necessary permits of regulatory authorities.

In addition to the joint -stock agreement, Metinvest Adria and Danieli signed a contract for the development of basic engineering for a new steel plant in Pyombino.

“The contract covers the basic design for electric arc furnaces, steel -tap item, casting and rolling. It also includes the creation of a cold processing center and service, as well as auxiliary facilities and equipment, ”Metinvest said.

The construction of the new plant for the production of environmentally friendly steel was intended to contribute to the revival of the industry of the city of Pyombino.

JSW Steel Italy, a subsidiary of the Indian JSW Steel, which acquired a steel plant in Pyombino from Algerian Cevital in 2018, is also involved in modernization plans.

According to the memorandum of the mutual understanding signed between the JSW Steel Italy and the Italian authorities in March 2024, the JSW rail -processing camp should be implemented.

JSW Steel Italy can produce rails, rollers and rods, getting blanks and blums from its mother's company.

JSW Steel Italy has already granted Metinvest the right to part of the property related to the construction of a new environmentally friendly steel plant.