Metinvest accelerates new Italian plant investment

Metinvest is said to be accelerating the development of its planned new steel mill in San Giorgio di Nogaro, northern Italy, to be built by Italian equipment maker Danieli.

The management, including Metinvest’s chief executive Yury Ryzhenkov, were in the area last week for a series of meetings with regional authorities and Danieli ceo Gianpietro Benedetti. The parties carefully considered the feasibility of the new production site, sources close to the steelmaker tell Kallanish.

Metinvest refused to comment at this stage as the final investment decision is yet to be reached. However, the region of Friuli Venezia Giulia is ready to invest €80 million ($80.9m), of which €60m will be by the end of July. An agreement should be signed by the end of August.

Benedetti, who accompanied Yury Ryzhenkov on a visit to Danieli’s ABS steelmaking facility, told local press that Metinvest will need to produce about 1.5 million tonnes/year of slab after losing its flagship Azovstal plant in Ukraine. The steelmaker will also have to establish a second mill, at a cost of about €350m, to produce hot strip. The two facilities may cost €800m in total, Kallanish notes.

In May, Metinvest owner Rinat Akhmetov renewed his firm’s commitment to its Italian facilities Metinvest Trametal, in San Giorgio di Nogaro, and Ferriera Valsider in Verona, northern Italy. In an interview with Italy’s RAI television network, Akhmetov said Metinvest is going ahead with its plan to build in Italy a new 2m t/y flat products steel mill supplied by equipment maker Danieli (see Kallanish passim).

Natalia Capra France