Italian-headquartered Marcegaglia has signed a Eur450 million equipment supply agreement with steel plant making company Danieli for the new steelmaking and flat rolling facility in Fos sur Mer, France, as the Italian steel processor seeks to secure upstream supply and cut carbon emissions through scrap-based production.
The Mistral Project, with total capital expenditure of around Eur1 billion, will produce more than 2 million metric tons/year of liquid steel and up to 3 million mt/year of stainless and carbon steel hot rolled coils once operational, the companies said April 14. The facility will cover about 35% of Marcegaglia Group’s total coil and slab demand, primarily supplying the company’s Italian downstream facilities.
The investment represents Marcegaglia’s largest upstream integration project and reflects growing pressure on European steelmakers to reduce emissions while maintaining competitive supply chains. The plant will use scrap metal, low-carbon hot briquetted iron, and nuclear and renewable energy to achieve up to 80% lower greenhouse gas emissions compared to traditional blast furnace steelmaking methods, according to the companies.
The facility will feature an electric arc furnace with the latest-generation technology, a single-strand continuous slab caster producing thick slabs, and a conventional hot strip mill designed to process different charging mixes across a wide range of flat steel grades. The final investment decision is expected by the end of 2026, pending completion of permitting processes and negotiations with French institutions, which the companies described as being in advanced stages.
Platts, part of S&P Global Energy, assessed Northwest European hot-rolled coil carbon-accounted at Eur775/mt ex-works Ruhr April 15, stable day over day.
Author: Annalisa Villa
