Capital allocation remains on hold for electrical steel production and the two cold rolling lines planned at Arvedi Acciai Speciali Terni (AST), Kallanish learns from union sources.
The stainless steel producer engaged with union representatives earlier this week to review its industrial strategy for the period spanning 2022 to 2028. The unions point out the company has maintained all its investments for the period, with the exception of delays concerning the two cold rolling lines and electrical steel production, despite an “extremely complicated macroeconomic and geopolitical context”, a union note says.
The industrial plan focuses on strengthening the hot area while also broadening the range of cold-processed products.
The initially committed €1 billion ($1.1 billion) investment encompasses, among other elements, a new rolling mill and a new pickling, rolling and annealing line, alongside the two electrical steel lines that are currently on hold.
The unions are pressing the government to expedite the signing of the programme agreement, which would facilitate the swift relaunch of the site. AST is in discussions with authorities to finalise the agreement.
In January, the company, authorities and unions established a timeline to address technical issues concerning energy supply. It also aims to determine the resources that will be allocated by the Environment Ministry and Energy Security and the Ministry of Enterprises and Made in Italy to facilitate the industrial plan.
Arvedi has invested €325 million in AST since it acquired the firm in 2022, with an additional €232m to be allocated this year across various segments at the Terni-based mill. Of the investment so far, €160m was designated for equipment and upgrades that are currently operational, while works are progressing with a remaining value of €165m.
In a previous letter to the workforce, Arvedi founder and president Giovanni Arvedi affirmed that the industrial plan for the plant’s production of electrical steel includes a significant expenditure of €411m (see Kallanish passim).
Natalia Capra France
