Ukrainian steelmaker Metinvest is reportedly pulling out of its planned green steel coil mill in Piombino, Tuscany, sources close to the project tell Kallanish.
The project partners have received two non-binding proposals, one involving a fund and the other an industrial partner, a source says. Under one of the offers, Metinvest could keep a 15% stake, down from its original 75%.
Italian equipment maker Danieli holds the remaining 25% of Metinvest Adria, the company set up to carry out the investment.
Metinvest had initially planned to invest around €500 million ($562m). Within four weeks, it should become clear which offer will be turned into a binding bid, the source adds. However, the Ministry of Enterprises and Made in Italy (MIMIT) says in a note that the company has indicated a maximum of eight weeks to assess the offers.
“The government declared this project strategic, and it cannot be wiped out at a stroke. Where is the national steel plan promised by [MIMIT minister Adolfo] Urso? What we are facing is another endless industrial crisis…and 1,400 workers without a future,” a union note says.
Several major players, as well as leading investment funds and lenders, have expressed interest in joining the project including JSW, which owns a rail mill in Piombino.
“The workers have been on temporary layoff since 2009. The rail mill cannot keep running without the maintenance work. So far from JSW we only have words and no action,” a union source comments.
“The parties that have submitted letters of interest are first class. They add prestige to the project,” a shareholder in the project previously told Kallanish. Many are keen on the project, he added. None of the interested parties are Italian, although Italian investors could join as minority partners. The project has reached the final stage of studies and permitting.
Metinvest was not available to comment before press deadline.
