Metinvest and Danieli have completed the closing of Metinvest Adria, their long-awaited joint venture that will oversee their new €3 billion ($3.5bn) low-carbon flat steel mill in Piombino, Tuscany. The deal was completed earlier this month after all conditions in the shareholders’ agreement, including regulatory approvals, were met.
The new plant that will be built with technology supplied by Danieli. It will have a production capacity of 2.7 million tonnes/year of hot-rolled steel with significantly reduced CO2 emissions. The project will relaunch the Piombino industrial site that has been idle for over a decade, generating around 1,100 jobs with strong backing from Italian national and local authorities, the two firms say in a note obtained by Kallanish.
Metinvest will hold a 75% equity stake in the venture, while Danieli retains 25%. The project will be financed through a combination of shareholder equity, external debt, and state support. The equity contribution will be split 75/25, with Metinvest holding 75% and Danieli 25%. Governance will be handled by an eight-member board, split equally between Metinvest and Danieli, along with a supervisory board.
“The completion of the transaction marks an important milestone in the strategic partnership between Metinvest and the Danieli Group, aimed at developing a state-of-the-art plant for steel production and flat product rolling in Italy,” the note states.
Earlier this month, Metinvest Adria officially signed the programme agreement with both central and local authorities, marking a major milestone in the development of the new plant.
The programme agreement was signed with the Ministry of Enterprises and Made in Italy (MIMIT), the Ministry of Infrastructure and Transport (MIT), the Ministry of the Environment and Energy Security (MASE), the Ministry of Labour, the Tuscany Region, the City of Piombino, and other local authorities. Additionally, Metinvest Adria has signed a separate development agreement with MIMIT.
Both agreements are critical steps in securing the necessary public and private financial commitments to develop the steel production hub in Piombino. In parallel, an insurance coverage guarantee agreement has been finalised with Italian state entity SACE, further strengthening the project’s financial framework. This follows the recent signing of an agreement between Metinvest Adria and trade unions, paving the way for worker involvement and local stakeholder alignment (see Kallanish passim).
Natalia Capra France
