Flacks discusses Marcegaglia, Metinvest, Danieli ADI relaunch support
Flacks Group is in discussions with Italian steelmaker and re-roller Marcegaglia, as well as Metinvest and technology supplier Danieli regarding the industrial plan Flacks intends to implement for Acciaierie d’Italia (ADI) after its acquisition.
This was confirmed to Kallanish by Flacks chairman Michael Flacks, Antonio Marcegaglia and Danieli president Alessandro Brussi.
Completion of the sale may take longer than initially planned due to Italy’s complex and lengthy bureaucratic procedures. Antonio Marcegaglia confirms he is in talks with Flacks but rules out taking an equity stake. “The objective is to support and strengthen the future company’s industrial plan through significant coil offtake in the future,” he says.
The industrial plan will need a technology partner and a large off-taker such as Marcegaglia, while Metinvest would act as the industrial partner supporting the project on raw materials supply. According to Brussi, Danieli and Flacks are currently exchanging views on the future industrial plan and the technological element of the project, although discussions remain at a preliminary stage.
The transaction is progressing, with Flacks’ team of specialists working alongside the Italian government to reach closing. However, given the scale and complexity of the project, which entails a full overhaul of the Taranto steelworks, the process will require time and detailed structuring, Brussi believes. He notes that Danieli is globally recognised for its advanced, low-carbon technologies.
Of the more than €5 billion ($5.89 billion) investment envisaged by Flacks in the former Ilva, around €3 billion is being allocated for new equipment, including three electric arc furnaces and potentially a direct reduced iron plant.
Brussi confirms that Danieli is in contact with Flacks’ technical team, who he describes as experienced professionals with in-depth knowledge of the plant. At this stage, however, discussions are focused on the exchange of technical information and concepts, as the project’s complexity and sizeable financial structure will take time to be defined.
In a recent interview with Kallanish, Flacks noted that while the Italian government has recommended the involvement of an industrial partner, this is not an obligation. He added that he values the advisory input of Metinvest, Marcegaglia and Danieli. Flacks and other sources dismiss the possibility of Italian steelmaker Arvedi becoming a shareholder as some press reports have suggested.
Meanwhile, ADI is restarting blast furnace no.2 at its Taranto steelworks. A scheduled maintenance of BF No.4 will start on 28 February. The special commissioners are expecting BFs no.2 and no.4 to be fully operational by April, with the plant reaching a production capacity of 4 million tonnes/year of steel (see Kallanish passim).
A source close to the company believes Taranto’s output in 2025 was about 2mt or slightly lower, as one BF has always been operational.
Metinvest was unavailable for comment before press deadline.
ArcelorMittal Sestao picks Danieli for new green steel upgrades in Spain
Spanish steelmaker ArcelorMittal Sestao, part of ArcelorMittal’s European operations, has launched a new phase in its decarbonization and capacity expansion program at its Vizcaya plant in Spain.
The company has entrusted Italy-based plantmaker Danieli with the supply of a state-of-the-art fume-treatment plant and a vacuum degasser, reinforcing its strategy to achieve zero-carbon emissions while enhancing productivity and product range.
Investment in green steel infrastructure
The new facilities form a core element of ArcelorMittal Sestao’s investment roadmap, targeting zero-carbon emissions and greater competitiveness in the European flat steel market. Both units are expected to become operational in August 2026, according to Danieli.
Fume-treatment plant to increase capacity
The fume-treatment plant installed by Danieli will serve the existing EAF No. 1, enabling full utilization of the two electric arc furnaces (EAFs). This upgrade will increase the plant’s productivity up to 1.6 million metric tons per year.
Vacuum degasser for high-quality flat products
Alongside the FTP, a new vacuum degasser (VD) station will be installed, equipped with mechanical dry vacuum pumps. This system will allow the production of ultra-clean steel, with precise chemical control and minimal nitrogen and hydrogen levels.
This step broadens ArcelorMittal Sestao’s steel grade portfolio, particularly in advanced flat products, catering to demanding applications in automotive, infrastructure, and clean technologies.
Program agreement signed to revitalize Piombino steel hub in Italy
During the Ukraine Recovery Conference held in Rome, a program agreement was officially signed to support the revitalization of the Piombino steelmaking hub in Tuscany. The initiative, led by a public-private partnership, represents a key step toward the reindustrialization of the area and the economic regeneration of the local community.
The agreement was signed by Metinvest Adria – a joint venture between Ukraine’s Metinvest Group and Italy’s Danieli Group – together with the Italian 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 and Social Policies, the Tuscany Region, the Municipality of Piombino, and other local institutions.
The project includes the construction of a next-generation steel plant in Piombino, with a total investment of approximately €2.5 billion, of which €1.5 billion will be allocated to cutting-edge technology supplied by Danieli. The agreement also provides for a development agreement with MIMIT, supported by a SACE guarantee (SACE is Italy’s export credit agency), which will be activated upon approval by the Ministry of Economy and Finance (MEF).
According to Metinvest Adria, the plan will create approximately 1,100 stable jobs, including both direct and indirect employment. The agreement is part of a broader roadmap that has already included the signing of a union agreement with relevant trade organizations.
As previously reported by SteelOrbis, the formalization of this program agreement marks a natural continuation of the process started with the establishment of Metinvest Adria and the subsequent development agreement signed by JSW Italy for the modernization of the existing rail production mill. The signing confirms the shared goal of transforming Piombino into a strategic European hub for green steel production.
“This is not just an industrial project,” stated Yuriy Ryzhenkov, CEO of Metinvest Group, “but a concrete example of reconstruction and international cooperation between Italy and Ukraine.”
The Piombino site is thus positioned to become a European reference point for low-emission steelmaking, leveraging state-of-the-art, energy-efficient, and environmentally sustainable technologies, while also strengthening strategic ties between the two countries.
Danieli completes Lusosider pickling line upgrade
Brazil-based CSN’s Portuguese subsidiary, Lusosider Aços Planos, has issued the final acceptance certificate to Danieli for the successful commissioning of the new entry section at pickling line No.2 in Aldeia de Paio Pires, the technology supplier tells Kallanish.
“The project consisted of replacing the existing mandrel with a new, tailor-made designed equipment, along with on-site advisory services for erection and commissioning,” Danieli explains.
The contract included an external bearing to limit the current deflection of the mandrel under coil loading and strip tension. “Tests conducted during the commissioning phase showed a precise integration with the pickling line and robust behaviour of the supplied equipment,” the supplier adds.
Complete with main gears and bearings, and equipped with three additional sets of adapters to cover all the internal diameters of the coils, the mandrel is capable of a wide expansion range, from 570mm to 660mm.
Todor Kirkov Bulgaria
Swedish SSAB chooses Danieli to build new Lulea mill
Swedish steelmaker SSAB has awarded Italian steel plant maker Danieli to build a new mill in Lulea, northern Sweden, the two companies said July 15.
The plant will have a capacity of 2.5 million mt/year and consist of two electric arc furnaces, a secondary metallurgy facility and a direct strip-rolling mill to produce SSAB’s specialty products, along with a cold rolling complex.
The new mill will be supplied with a mix of fossil-free sponge iron from the Hybrit demonstration plant in Gallivare and recycled scrap.
The overall selected configuration of Danieli technology will allow SSAB to produce a wide range of hot-rolled strip in coil-to-coil and semi-endless modes, resulting in a product portfolio expansion incorporating a fully electric tunnel furnace to ensure a minimum carbon footprint, the press release said.
The startup of the new mill is planned for the end of 2028, with full operating capacity one year later with environmental permits that are expected at the end of 2024.
When completed, SSAB will decommission the existing blast furnace-based production system in Lulea and this will reduce Sweden’s CO2 emissions by 7% in addition to the 3% from the other company’s mill conversion in Oxelosund.
Platts, part of S&P Global Commodity Insights, assessed Northwest European hot-rolled carbon-accounted coil stable on the day at Eur750/mt ($818/mt) ex-works Ruhr July 12.
Annalisa Villa
