Italy and Ukraine’s Metinvest join forces on a €2.5 billion green steel plant in Tuscany

A strategic project for the Italian steel industry

On November 21 in Rome, Ukrainian steel giant Metinvest and the Italian Ministry of Enterprises and Made in Italy (MIMIT) signed a joint declaration to establish a green steel production facility in Piombino, a historic port city in Tuscany with a long-standing tradition in steelmaking and metallurgy. Once a hub of Italy’s steel industry, Piombino has faced significant economic and industrial challenges in recent years.

This initiative represents a significant step in the redevelopment of the area, with an anticipated investment of €2.5 billion. The planned facility, designed to produce 2.7 million tons annually, will employ electric arc furnace technology and use recycled materials, including steel scrap and direct reduced iron sourced from Ukraine.

Institutional collaborations and concrete progress

The project has garnered support from key players, including SACE and other financial institutions, which have expressed interest in providing funding. The North Tyrrhenian Sea Port System Authority confirmed the plan aligns with its development goals. Furthermore, an agreement between Metinvest-Adria and JSW Steel Italia S.p.A. secures access to critical industrial areas.

"The agreement on the areas is a crucial step toward defining the Program Agreement, which is essential for advancing the project," said Luca Villa, CEO of Metinvest Adria.

A sustainability-oriented facility

The plan aims to establish one of Europe’s most advanced green steel facilities, minimizing environmental impact while creating employment opportunities in the region. Construction is set to begin in early 2025, with production expected to start by the end of 2027.

"Collaboration with MIMIT and local institutions has been pivotal in building a shared vision. This project will not only strengthen the Italian steel industry but also support Ukrainian mining operations, showcasing how international cooperation can foster sustainable industrial development," commented Yuriy Ryzhenkov, CEO of Metinvest.

Looking ahead

The Program Agreement, anticipated by the end of 2024, will outline necessary actions, including site remediation, port infrastructure upgrades, renewable energy initiatives, and employment support measures.

With over 15 years of operations in Italy—including facilities in San Giorgio di Nogaro and Vallese di Oppeano—Metinvest is further solidifying its commitment to the Italian steel industry in collaboration with local institutions and communities.

In the image, from left to right: Yuriy Ryzhenkov (CEO of Metinvest), Luca Villa (CEO of Metinvest Adria), Amedeo Teti (Director at MIMIT), and Giacomo Mareschi Danieli (CEO of Danieli Group). Danieli, a 25% stakeholder in the Metinvest Adria joint venture, will supply the technologies for the new steel plant.

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