The Italian government is contributing to the funding of the Metinvest and Danieli’s planned green steel coil mill in Piombino, Tuscany, through state financial entity Invitalia. The approved support amounts to €285 million ($331.5m), earmarked for the construction of electric furnaces and related production infrastructure.
“This is a decisive step towards the relaunch of the Piombino steel hub and the creation of a modern, competitive and sustainable steel supply chain,” minister of Enterprises and Made in Italy (MIMT) Adolfo Urso says in a note obtained by Kallanish. “We are talking about one of the most important industrial investments in Europe, capable of combining innovation, environmental sustainability and skilled employment. The government is firmly supporting this strategic path, accompanying the development of the necessary infrastructure and accelerating the measures essential for the full reindustrialisation of the territory.”
The total investment for new project, overseen by Metinvest Adria, the joint venture between Metinvest and Danieli, will stand at about €3.2 billion. According to MIMT the project is in line with European decarbonisation targets and the ecological transition objectives for heavy industry, and it will be responsible for the significant relaunch of the Piombino area.
“The project has been further strengthened by a declaration of pre-eminent national strategic interest approved by the Council of Ministers, which also provides for the appointment of a special commissioner to accelerate its implementation.” Mimt continues.
Sources close to the matter say progress on the project was slowed by strong and public opposition from Italian steelmakers’ association Federacciai. One source, however, notes that all stakeholders, including central and local government, have been pushing for the project to happen. Together with Trasteel’s acquisition of service centre Magona in Piombino, the investment is seen as marking a revival of the area.
An additional €92m from MIMT has been allocated for the completion of the northern quay at Piombino port, a strategic infrastructure for the realisation of the Metinvest investment.
The new coil mill, known as the Adria project, has been ranked among the five foreign direct investments (FDI) with the highest impact potential in Europe, according to a project tracking database. This follows its recognition as a project of national strategic interest by the Italian government last year. It will have a production capacity of 2.7 million tonnes/year of hot-rolled steel with significantly reduced CO2 emissions (see Kallanish passim).
Metinvest was not available to comment before press deadline.
