Italian re-roller and steelmaker Marcegaglia is considering investing about €750 million ($811m) in the relaunch of its For-sur-Mer steel mill, in southern France, formerly known as Ascometal, a source close to the company tells Kallanish.
Since last year’s acquisition, Ascometal Fos-sur-Mer has been renamed Marcegaglia Fos-sur-Mer. It will produce hot rolled coil and retain its electric arc furnace. The current ingot producing equipment will be replaced with a continuous slab caster and a rolling line for HRC, with a capacity exceeding 2 million tonnes/year. Jacques-Yves Floch, a former manager at ArcelorMittal in Dunkirk, has been appointed director of the plant.
The site will be transformed with a focus on sustainability and energy efficiency, producing steel from scrap and low-emission direct reduced iron. HRC production is scheduled to start between the end of 2027 and the beginning of 2028. Groundbreaking following engineering studies is scheduled at the beginning of next year. The technical study is underway and at an advanced state of development.
The plant currently produces bearing and engineering steels, including ingots, billets and blooms, large-diameter rolled round bars and wire rod. The project has been welcomed by the French government for its intention to produce low-emission steel and create jobs. The public debate on the plant’s transformation is expected to take place between April and September.
Marcegaglia is engaging with various stakeholders to assess the potential synergies aimed at fully integrating into the region’s development areas, including the Grand Port Maritime of Marseille for managing steel and raw material flows through rail and sea.
Additionally, there are possible synergies with GravitHy’s prospective low-emission hot-briquetted iron plant for the supply of low-carbon raw materials, as outlined in the project presentation for the national debate commission, Commission nationale du débat public CNDP, obtained by Kallanish.
The Marcegaglia Group will provide direct financing for the project, without seeking external investment sources. There are no plans for public funding. The final investment decision should be reached between May and June, the source confirms. The company previously planned a €600m investment.
Last year, the Strasbourg administrative tribunal awarded insolvent Ascometal’s Fos-sur-Mer site to Marcegaglia. This followed Ascometal being declared insolvent and going into receivership after the proposed sale of its units to Italian long steel producer Acciaierie Venete was terminated.
Natalia Capra France
