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.
GravitHy, Marcegaglia to cooperate on green steel
French greenfield low-carbon hot-briquetted iron (HBI) producer GravitHy, Italian flat steel and tube producer Marcegaglia and low carbon fuel company Elyse Energy have signed a memorandum of understanding (MoU) to develop complementary industrial projects in Fos-sur-Mer, France, GravitHy said in a statement on 4 February.
The agreement formalizes the shared commitment to explore and develop industrial collaborations within the Fos-sur-Mer port and industrial zone, creating a major European industrial green steel hub in the area.
The cooperation includes shared logistics, including railway infrastructure; and carbon capture and consecutive utilization of CO2 emitted by Marcegaglia for Elyse Energy’s fuel production. The companies will also collaborate on water and energy solutions, and creation of common energy storage solutions.
GravitHy is developing a low carbon HBI production plant with a capacity of 2 mt/y, which will be in operation by 2030. The project will reduce emissions by around 90% compared with conventional blast furnace (BF)-based steelmaking.
Marcegaglia is in the process of modernizing the Fos-sur-Mer plant which it acquired in 2024. After the upgrade, which is scheduled for completion by 2028, the plant will produce green steel using electric-arc furnace (EAF) technology. Capacity of the mill will be 2.1 mt/y of both carbon and stainless steel hot-rolled coil, which will be shipped for further processing to Marcegaglia’s plant in Ravenna, Italy.
In 2025, Marcegaglia signed an agreement with equipment supplier Danieli to supply the Fos-sur-Mer plant. Prior to its acquisition of the Fos-sur-Mer mill, Marcegaglia had no carbon steelmaking capacities and relied on imported slab for heavy plate rolling and on HRC purchases, mainly from outside the EU.
Elyse Energy, through its NeoCarb project, plans to start production of green chemicals, including methanol and electro-sustainable aviation fuel (e-SAF) from 2030, using captured CO2 as feedstock.
Fire halts Marcegaglia CR line for ‘a few weeks’
Italian re-roller Marcegaglia plans to resume cold-rolling production at its Ravenna plant within a few weeks following a fire at the plant, a company spokesperson told McCloskey on 3 November.
Market participants reported that the fire occurred at the end of October.
“The fire, which affected one of the three cold rolling mills at the Ravenna plant, was promptly extinguished and did not involve any people. A recovery plan to restore the plant’s operations was immediately activated and is expected to be completed within a few weeks,” Marcegaglia’s spokesperson said. “Industrial and commercial agreements were also promptly activated to minimize the impact on deliveries, including in the short term.”
Italian buyers expressed concerns that the incident would reduce supply and push cold-rolled coil (CRC) prices higher.
McCloskey’s weekly marker for domestic CRC prices increased by EUR15/t week on week and EUR30/t month on month to EUR695/t ex-works Northwest Europe on 31 October.
The introduction of the carbon border adjustment mechanism (CBAM) from January 2026 has already pushed imported coil prices higher. At the same time, proposed tougher import quotas, which are expected to come into force in the first half of next year, have resulted in a reduction of offered volumes of overseas CRC.
As a result, European buyers are increasingly reliant on domestic supply. European steelmakers, however, have been reluctant to sell CRC, favouring either higher added value products such as hot-dipped galvanized coil (HDG) or less costly upstream products like hot-rolled coil (HRC).
Even a minor reduction of CRC availability could have a noticeable impact on the market, sources said.
Marcegaglia invests €278 million in Ravenna, logistics, decarbonization and innovation at core of new industrial plan
The Italy-headquartered Marcegaglia Group, one of Europe’s leading players in the processing of carbon and stainless steel – with 36 plants worldwide and a broad portfolio spanning welded tubes, strips, coils, and flat products – has announced a major revitalization plan for its production site in Ravenna.
As part of a development contract submitted to Invitalia and Italy’s Ministry of Enterprises and Made in Italy, the group will invest €278 million in the Romagna-based facility, complemented by over €20 million earmarked for research and development projects. This initiative represents Marcegaglia’s most significant industrial project currently underway in Italy, reaffirming the central role of the Ravenna plant within the group’s production and logistics network.
The plan, worth a total of €364 million, focuses on the digitalization and automation of logistics operations, the implementation of circular economy processes, the use of renewable energy sources, and the development of green hydrogen and carbon capture and storage (CCS) technologies. The project is fully aligned with the “Pact for Labor and Climate” of the Emilia-Romagna Region, which has expressed institutional support for the initiative.
As previously reported by SteelOrbis, Marcegaglia’s commitment to decarbonizing the Ravenna site is part of a broader strategic framework, which also includes support from the European Investment Bank (EIB). In December 2024, the EIB approved a €100 million loan as part of a €170 million plan targeting innovation, digitalization, and sustainability across the group’s facilities in Ravenna, Gazoldo degli Ippoliti, and San Giorgio di Nogaro.
Further demonstrating its integrated European vision, Marcegaglia is also advancing a €750 million investment in its French site in Fos-sur-Mer, where it is upgrading an electric arc furnace (EAF) facility and creating 380 new jobs. The objective is to transform the plant into a European hub for green steel production.
As SteelOrbis previously highlighted, the group’s expansion is part of an industrial strategy focused on vertical integration of the steel supply chain, international market growth, and ecological transition across the entire production cycle.
“Despite a period of great uncertainty, we have decided to carry out a substantial investment plan across three strategic sites – Mantua, Udine, and Ravenna,” said Antonio and Emma Marcegaglia, reaffirming the pivotal role of the Ravenna hub, described as “the group’s largest production site and main logistics platform.”
The new industrial plan further consolidates Marcegaglia’s position as a key player in the European steel sector, committed to an industrial path that combines competitiveness, innovation, and sustainability.
Marcegaglia to revamp cold rolling mill in Gazoldo
Marcegaglia is set to improve its production capacity and broaden its product range by upgrading its 20-Hi cold rolling mill located at the Gazoldo degli Ippoliti facility in Mantua, Italy. The investment will facilitate improvements in efficiency and precision, leveraging automation and digital technologies, the firm says.
Equipment maker Tenova will execute the modernisation works. The project will encompass the integration of Level 1 and Level 2 automation, a Human-Machine Interface (HMI), and Machine Learning applications aimed at improving the efficiency of the rolling pass schedule.
The upcoming revamp will feature the Advanced Roll Cluster Configurator, “an intelligent system that automatically determines the optimal roll sizes for different rolling configurations, ensuring efficient roll management,” Tenova explains in a note seen by Kallanish.
A vibration monitoring system will also be implemented to improve process stability and control. These adjustments will result in higher accuracy, improved process reliability, and increased operational efficiency, it adds.
20-high mills are used for high-speed production of cold rolled strip. “We are confident that Tenova’s expertise in 20-Hi mill technology and digital innovation will help us achieve our goal of restarting the mill with the most advanced rolling models and automation available,” notes Marcegaglia chief technical office Paolo Tenca.
Tenova asserts that the re-roller will set new benchmarks for cold rolling performance and manufacturing flexibility as a result of the revamp. The 20-Hi cold rolling mill is projected to commence operations in 2026.
Natalia Capra France
Marcegaglia UK expands stainless steel tube production
Marcegaglia UK has announced an expansion of its manufacturing capabilities at its Oldbury site and now produces electro-welded stainless steel tubes.
The addition complements its existing production of carbon steel tubes, allowing it to provide a broad range of high-quality steel products for various applications, Kallanish learns from the company.
The Oldbury facility spans 69,000 square metres, with 46,184 square metres of covered space. It is equipped with four production lines for carbon steel tubes, with a total capacity of 70,000 tonnes, alongside three production lines for stainless steel tubes, enhancing the capacity by an additional 30,000t.
The production of stainless steel welded tubes at Marcegaglia UK focuses primarily on steel grade 304, adhering to the EN10296-2 standards for round tubes and ASTM A544 standards for square and rectangular tubes.
The company says the expansion marks a significant step in its UK’s growth, reflecting its dedication to meeting the diverse needs of its customers across the steel industry whilst its production lines are equipped to provide a variety of specific tube finishes.
Marcegaglia UK has recently become a member of the British Stainless Steel Association (BSSA).
Carrie Bone UK
Joint venture between Marcegaglia Steel and Manni Group is now operational
Marcegaglia Steel and Manni Group have officially finalized their joint venture, creating a new entity focused on insulated and sectional door panels.
Following European Commission approval, the venture is now the second-largest panel producer in Europe, with operations in over 70 countries, projected revenue of €500 million, and nearly 700 employees.
The agreement involves Marcegaglia contributing Italian and Polish production facilities to Isopan Spa, with both companies holding a 50% stake. Operating under the ISOPAN and MARCEGAGLIA RWD brands, the joint venture includes 16 production lines across Italy, Spain, Romania, Poland, and Mexico.
The partnership aims to drive innovation, sustainability, and decarbonization in construction, leveraging their combined expertise and global reach. Leaders from both companies emphasized the collaboration’s potential to deliver advanced, efficient, and sustainable building solutions, cementing their roles as key players in the international construction market.
Source: marcegaglia.com
Marcegaglia accelerates Italian plants’ decarbonisation
Italian re-roller and steelmaker Marcegaglia is set to expedite the decarbonisation process at its facilities located in northern Italy, specifically in Ravenna, Gazoldo degli Ippoliti, and San Giorgio di Nogaro.
The firm has secured €100 million ($104.7m) from the European Investment Bank (EIB) to fund a range of initiatives focused on energy efficiency, innovation, and automation, with completion anticipated by 2028, Kallanish learns from the company.
The EIB grant is included in the group’s €170m decarbonisation strategy and aims to enhance the digitalisation and automation of logistics at Ravenna and Gazoldo degli Ippoliti. Marcegaglia plans to decarbonise the galvanising line in Ravenna and to advance the development of innovative, low-carbon, and energy-efficient technologies for electrical steels.
Funding will also be allocated for research, development, and innovation initiatives, especially those related to production processes at the three sites.
“The financing announced today will help Marcegaglia embark on a transformational journey, enabling the group to adopt more sustainable industrial processes and cutting-edge technologies to improve its environmental footprint, increase safety at work and reduce costs … For projects such as these, the EIB can offer higher initial disbursements and longer maturities to make loans even more attractive to the energy sector, and also increase the co-financing ceiling to 75%,” the firm says in a note.
Antonio and Emma Marcegaglia assert these projects will contribute to a further reduction in the company’s environmental impact while enhancing the technology employed. The EIB financing will cover over 50% of the total project expenditure.
In June, Marcegaglia took over Ascometal’s Fos-sur-Mer in France. The plant, renamed Marcegaglia Fos-sur-Mer, will produce hot rolled coil. The group will retain the electric arc furnace-based unit’s entire workforce and will invest about €600 million in its revamping.
Natalia Capra France
Marcegaglia to revamp Sheffield mill, boost output
Marcegaglia’s Stainless division in the UK is set to enhance the productivity of its Sheffield mini-mill through a strategic modernisation investment carried out by Primetals, Kallanish learns from the equipment maker.
A Marcegaglia spokesperson confirms the company will increase output when the revamp is completed, going from the current 300,000 tonnes to 500,000-550,000 t/year.
Marcegaglia has ordered a latest generation electric arc furnace to replace the existing unit, along with a de-dusting system, the representative confirms. The revamp will include an extensive automation upgrade, which Primetals will execute in three phases for immediate, medium-term, and long-term modernisation.
The equipment maker conducted a Through-Process Optimization (TPO) study, a detailed analysis of Sheffield’s steelmaking process, identifying bottlenecks and improvement measures.
The supply includes the optimisation of several systems, including a scrap yard supervisor producing cost-optimised scrap recipes, visualising process data, and recording loading. It will also receive intelligent sensors, such as a scrap basket profile, EAF Optimiser, AOD Optimiser, and LF Optimiser.
“As a first step, Primetals Technologies will install Melt Expert, a fully automated electrode control system for electric arc and ladle furnaces. Mid-term plans include the implementation of process optimisation software (Level 2) for the electric arc furnace (EAF), argon-oxygen decarburization (AOD), and ladle furnace (LF) plants, all of which are currently missing from the automation landscape. Long-term plans include the replacement of the electric arc furnace to accommodate the future productivity increase … The ultimate goal is to increase productivity, which will require introducing an additional production shift,” Primetals says in a note.
According to Marcegaglia, works will start as soon as possible in 2025 and be completed potentially by end-2026.
Natalia Capra France
Marcegaglia is set to double stainless production at its site in Fagersta, Sweden
Marcegaglia Fagersta Stainless announced a Eur100million investment to double the company’s production volumes in the coming years, the company said on Nov. 6 during its 150th anniversary.
In Sweden, Marcegaglia produces around 60,000 mt of wire rod and aims to double its total production with the bar and stainless wire rod production.
“This strategic investment will expand our product offering to include a full range of stainless steel wire rod, bar, as well as rolled billets,” the company said. “The project, set to roll out over the next few years, positions Fagersta Stainless for continued growth, efficiency and sustainability in the global stainless steel Long Products market.”
At the end of September, Antonio Marcegaglia, chairman and CEO of Italy’s Marcegaglia Group, already anticipated to S&P Global Commodity Insights that the group was considering a “significant” project to expand capacity at its Fagersta site.
Fagersta Stainless generates approximately Eur160 million in turnover and employs about 250 people. Marcegaglia acquired Fagersta in 2023 as part of its purchase of the stainless steel products division of Outokumpu.
Platts, part Commodity Insights, assessed European 18-8 stainless steel scrap solids at Eur1,1170/mt on Nov. 1 on a CIF Rotterdam basis, stable on the day and up Eur10 on the week.
The 18-8 stainless steel scrap clips and solids are a commonly used reference for the grade-304 stainless steel scrap. The scrap contains a minimum of 16% chrome content and minimum of 7% nickel content.
