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.

steelorbis.com

Piombino steel plant relaunch plans unveiled

Steel company Metinvest Adria presented plans for the relaunch of steel production at Piombino, Italy, at a meeting on 10 June attended by Italian authorities including the Ministry of Enterprises and Made in Italy (MIMIT) and Italian trade unions.  

An agreement will be formalized after approval by the trade unions.

Following the meeting, the unions called off a strike that had been planned for 12 June, Italian trade unions FIUM-CGL and UILM said.

In February this year, Ukrainian steelmaker Metinvest and equipment manufacturer and engineering firm Danieli signed a shareholder agreement governing their partnership in a new steel plant in Piombino, Italy.  The project is governed through a joint partnership Metinvest Adria.

The Piombino steel plant, which is owned by JSW Steel, produces long steel products, including rails and operates at low capacity. Last year, Metinvest Adria finalised an agreement with JSW Steel Italia to secure access to industrial areas.

In 2024, Metinvest and MIMIT signed a declaration to promote the industrial revitalisation of Piombino through a large green steel production plant.

The new project of Metinvest Adria Piombino is anticipated to have capacity of 2.7 mt/y via electric-arc furnace production, with recycled feedstock including scrap, pig iron and direct reduced iron. The plant will partially source these raw materials from Metinvest’s operations in Ukraine. Production at the new plant is expected to start in 2027, according to McCloskey’s European Green Steel Profile.

Maria Tanatar

opisnet.com

Italy reaches strategic agreement to relaunch green steel production in Piombino

All parties have reached an agreement on a strategic framework to relaunch the steelmaking hub in Piombino, Tuscany, Italy.

The agreement, the result of extensive discussions between the Italian ministry of enterprises and made in Italy, local authorities, the Italian State Property Agency, and the Piombino port authority, represents a key step in the country’s national plan for sustainable steel production.

The deal builds on the process launched on February 19 this year with the signing of a shareholders’ agreement between Ukrainian steel producer Metinvest and Italian plantmaker Danieli, establishing the joint venture Metinvest Adria S.p.A. to build a new low-emission steel plant in Piombino. It also follows the development agreement signed with JSW Italy, a subsidiary of India’s JSW Group, on April 18 for the modernization of the site’s rail production line.

“This agreement is the result of teamwork,” said Adolfo Urso, minister of enterprises and made in Italy, highlighting the importance of coordinated efforts among government, local institutions, and industrial partners. “Today we are looking at the opportunity to create in Piombino one of the most strategic green technology sites in both Italy and Europe,” he added, recalling the critical state of the site two years ago.

Luca Villa, CEO of Metinvest Adria, described the deal as “another concrete step” toward establishing a sustainable and competitive production facility that will serve the broader European steel supply chain. Marco Lerz, head of project finance at Danieli Group, reaffirmed the company’s commitment to bringing cutting-edge green technologies to the site, with a strong focus on efficiency and minimal environmental impact.

The framework agreement will now be presented to trade unions before the formal signing. The overall goal is to transform Piombino into a key European hub for low-emission steelmaking.

steelorbis.com

 

Metinvest ready to rebuild Ukraine as it restores steel capacity

As peace talks intensify three years after Russia’s invasion of Ukraine, Metinvest, the country’s largest steel producer, is ready to contribute to the nation’s reconstruction and welcomes partnerships while navigating a challenging international trade environment.

“If the war ends with good security arrangements for Ukraine, Metinvest would like to play a role in rebuilding,” Metinvest CEO Yuriy Ryzhenkov said Feb. 27 in an interview.

To facilitate this effort, Metinvest has initiated its Steel Dream project, which aims to quickly rebuild infrastructure using steel for over 200 ready-made projects based on three prefabricated steel solutions: frame, module and platform.

The company also plans to invest in restoring its facilities to full operational capacity. Currently, Metinvest operates two mills in Ukraine: Zaporizhstal (flat steel) and Kamet Steel (long steel). Zaporizhstal is running at about 75% capacity, while Kamet Steel is operating at 65%-70%.

Ryzhenkov said the company aims to restore full capacity for the blast furnaces — one at Zaporizhstal and one at Kamet Steel — within two years, a timeline critical for meeting market demands and supporting post-conflict rebuilding efforts.

 

Expecting a rebound

For 2025, Metinvest expects a slight decline in steel production due to scheduled maintenance, but Ryzhenkov is optimistic that production levels will rebound to 2024 figures, when crude steel production increased by 4% year over year to 2.09 million mt.

Iron ore production surged by 42% to 15.7 million mt, with the company planning to enhance product quality and increase output.

“At the iron ore facilities, we will invest to enhance mainly the quality of the products that we will be able to offer, specifically our ferrum content in our products,” Ryzhenkov said.

“But also, we will be able to increase the quantities that we produce at our iron ore facilities. In the steelmaking facilities, there are strategic investments that can be made for improving the product range.”

He underlined that these are medium-term projects while for the long term — as Ukraine still has the same obligations to decarbonize the steel industry as the rest of Europe – Metinvest had plans for decarbonizing its facilities, such as the construction of a direct iron reduction plant considered in the past while pursuing brownfield investments to upgrade its steelmaking and iron ore facilities.

 

Investments

Metinvest confirmed it was still interested in the Huta Czestochowa mill in Poland. However, the Polish government’s classification of the mill as a strategic enterprise has delayed the auction process.

However, Metinvest has made significant progress in Italy, signing a shareholder agreement with Italian steel producer Danieli. This collaboration aims to develop a 2.7 million mt/year flat steel producer, enhancing Metinvest’s production capabilities and product offerings.

The next steps involve finalizing the engineering plans and financing structure to pave the way for construction activities.

 

Impact of US policies

Metinvest, one of Ukraine’s largest taxpayers, emphasizes the importance of maintaining trade relations with the US.

Ryzhenkov said he supports the Ukrainian Steel Association’s call for exemptions from the anticipated 25% import tariffs proposed by US President Donald Trump.

Ryzhenkov explained that Ukrainian steel constitutes less than 0.5% of US imports and he warns that tariffs could harm both the Ukrainian economy and US interests. By allowing Ukrainian steel to continue to be in the US market, the US would be supporting a key ally while also reducing the need for foreign aid to Ukraine.

Metinvest focuses on Finland, Sweden as new markets

Metinvest restructured its exports following the Russian invasion of Ukraine and has found new markets with the reopening of seaports, says chief operating officer Oleksandr Myronenko.

“First, we exported through Poland to the north, to the ports of Gdansk, Swinoujscie and others,” he told Ukrainian-based business magazine The Page. “There was also a logistics chain to the south, reaching the Romanian port of Constanta.”

“We primarily export iron ore to China and both iron ore and metal to Europe. Now we are even dealing to markets in northern Europe where we have never exported before – to Finland and a little bit to Sweden,” Myronenko said.

“They [Nordic customers] have posed a challenge as customers there are quite demanding and require very high-quality products. We have thus also started production of new types of products with increased iron content,” he added.

According to him, 2024 has been quite challenging since Metinvest did not anticipate such a drop in prices, which are currently 30-40% lower than forecast.

“In terms of steelmaking, the group managed to keep five blast furnaces operational – three at Zaporizhstal and two at Kametstal – along with the full range of rolled products. These plants have reached approximately 75% of their capacity compared with the pre-invasion situation. Considering the destruction of plants in Mariupol, Metinvest’s steel production now stands at around 35-40% of pre-war levels,” Myronenko noted.

Ukraine’s steelmakers are sustaining these production volumes thanks to the reopening of seaborne exports, Kallanish notes.

“We started the year with rather modest production expectations of around 1 million tonnes/month of iron ore,” Myronenko said. “However, the consistent operation of the ports ensured steady demand from Ukraine’s steelmakers, and by the end of the year we had reached 1.6-1.7m t/m. This represents 40-50% of capacity compared with 2021. Three of the group’s mining and processing plants are currently operating.”

The company was forced to suspend operations at Inghulets Iron Ore due to high tariffs for imported electricity during power outages. Given the specifics of the production chain and high energy costs, maintaining operations became inefficient, Myronenko continued.

“Central Iron Ore and Northern Iron Ore are operating quite well. Southern Iron Ore is severely impacted by power restrictions caused by missile attacks on Ukraine, forcing us to balance consumption,” he said. “We have simply suspended some of the equipment there.”

Svetoslav Abrossimov Bulgaria

kallanish.com

Metinvest confirms interest in Polish plate mill

Metinvest is among the parties interested in acquiring insolvent Polish plate maker Liberty Huta Czestochowa, says the Ukrainian steelmaker’s commercial director, Dmitriy Nikolayenko.

Huta Czestochowa was declared insolvent by the Czestochowa regional court and appointed an administrator last month after hitting financial difficulties amid challenging European market conditions, including high import penetration.

The firm’s administrator, Adrian Dzwonek, has since been looking to rapidly secure a firm to lease the plant in order to restart production, with that firm then later potentially acquiring the works in full. The same model was used in 2019/20 when Huta Czestochowa was last separated from its previous owner, ISD, and eventually acquired by Liberty. Metinvest was also said to be interested in Huta Czestochowa back then.

“We can confirm that we have been invited to consider leasing the steelworks’ assets, with the possibility of acquiring them later,” Nikolayenko says in a note seen by Kallanish. “At this time, we do not yet know in what state the previous owner left the plant. We have to conduct a thorough assessment, including a comprehensive due diligence study, which would determine the date of the steelworks’ launch.”

Were the Ukrainian firm to acquire the Polish plate mill, it would plan for its long-term development, serving all available markets including Ukraine and the EU. Ukraine will need significant steel for its post-war reconstruction, providing a strong potential market for Czestochowa’s products. Metinvest could also supply the plate mill with feedstock given its proximity to and existing rail connection with Ukraine.

According to media reports, Sunningwell International, which leased Czestochowa in 2019 but missed out on acquiring it, is also in the running this time and is conducting due diligence. The firm is however this time acting on behalf of a special purpose vehicle created by a large unnamed North American steel investor. Sunningwell did not respond to request for comment before deadline.

Another potential suitor is Polish state-owned coal exporter and steel fabricator Weglokoks. The firm’s chief executive, Tomasz Slezak, made no secret of its interest at an industry event attended by Kallanish in May when he said Weglokoks would consider acquiring Czestochowa if the opportunity arose.

Liberty Czestochowa has a 700,000 tonnes/year EAF and 1.2 million t/y heavy plate capacity.

Adam Smith Poland