Italian authorities have approved a new financial support measure in the 2026 budget aimed at sustaining domestic low-emission stainless steel production based on scrap.
According to an Italian Senate document obtained by Kallanish, the measure aims to promote low-emission production processes and restrict pressure from imports. Acciai Speciali Terni, part of Arvedi, is the main beneficiary, a source close to the company confirms.
There is no distinction in the text between flat and long products. The benchmarks are set per tonne of steel, which shows the measure targets the primary production stage, not specific finished products. Both stainless flat and long products are eligible, as long as they are produced with low carbon energy and scrap.
The measure provides for €35 million ($41.21m) in public funding between 2026-2028. According to Article 134-bis of the Senate document, eligibility requires that at least 90% of input consists of stainless steel scrap, although 70% is allowed for certain special steel grades. In addition to scrap requirements, the beneficiary must comply with energy efficiency conditions.
The contribution may be combined with other forms of state aid covering production costs. According to the document, the measure is designed to reinforce the competitiveness of Italy’s stainless steel industry, safeguard domestic production capacity, and align industrial policy with national and EU decarbonisation objectives.
AST has meanwhile just started up the new slab walking beam furnace in Terni which produced its first slab earlier in December. “The plant plays a fundamental role in the production process, both in terms of its impact on product quality and its contribution to reducing CO2 emissions. The new furnace is built with the most innovative technologies to reduce methane consumption and emissions, while ensuring high performance in terms of product quality,” says Arvedi founder Giovanni Arvedi.
This represents the most significant investment for the plant in the last 30 years, he adds.
