Metinvest and Danieli confirm their intention to build a steel plant in Italy
21 February 2025 09:42
The joint future of Ukrainian and Italian steelmaking is one step closer. Metinvest and Danieli have signed a shareholder agreement on partnership, which is an important component of the project to build a modern steel plant in the Italian city of Piombino. This was reported by the press service of Metinvest Group, "Komersant Ukrainian" reports.
This agreement consolidates the main agreements between Metinvest Group and Danieli on joint management, decision-making and financing that will facilitate the construction of the new plant.
“The signing of the shareholders’ agreement is a crucial step towards the restart of the Piąbino steel hub, which will be a European leader in green technologies. At the same time, it strengthens the strategic cooperation between Italy and Ukraine, creating a strong bridge between our metallurgical industries, which is of particular importance in the context of Ukraine’s reconstruction,” said Adolfo Urso, Minister of Enterprise and Production of Italy.
The shareholder agreement is expected to enter into full force in the second half of 2025, after all the conditions precedent, including the receipt of the necessary regulatory approvals, have been met.
What is known about this joint project
The plant, located in Piombino, Tuscany, Livorno Province, will play a leading role in modernizing and increasing steel production in the region. Metinvest Adria will become a project company for the joint construction and operation of an environmentally friendly rolled steel plant.
The company will use technologies based on electric arc furnaces and secondary raw materials, including scrap, pig iron, and direct reduced iron, which will be supplied by Metinvest Group’s Ukrainian enterprises.
The new steel plant is expected to have an annual capacity of 2.7 million tons.
In addition to the shareholder agreement, the meeting also saw the signing of a contract between Metinvest Adria and Danieli to develop basic engineering for the Piąbino plant, which will be one of the most technologically advanced green steel production facilities in the world. The project is intended to serve as a model for future modernization of Metinvest’s plants in Zaporizhzhia and Kamianske.
The contract covers basic engineering for electric arc furnaces, steelmaking, casting and rolling on the Danieli QSP-DUE module. In addition, it is planned to set up a cold steel processing and service center, as well as auxiliary facilities and equipment. The use of advanced technologies will ensure high productivity and environmental safety of the plant.
On November 20, 2024, Metinvest Group and Danieli signed a declaration on the construction of a large green steel plant during a meeting of the governments of Italy and Ukraine in Rome. The plant is to be financed primarily through borrowings from international financial institutions and shareholders’ own funds.
