en.Wedoany.com Reported - Ukrainian steel and mining company Metinvest Holding is seeking new equity investors for the Piombino green steel project in Italy to reduce its own capital contribution pressure. The project plans to build a low-carbon steel production base in Piombino, on the Tuscan coast of Italy, with a total investment of approximately €3 billion (about $3.4 billion) and an annual production capacity of 2.7 million tons of low-carbon steel. Under the original financing arrangement, project funding consists of debt, government subsidies, and equity contributions from joint venture partners, with Metinvest originally planning to contribute over €500 million (about $570 million), accounting for approximately 75% of total equity. The company is now seeking new investors, aiming to reduce its own cash contribution to below €300 million (about $340 million). Italian equipment manufacturing and engineering company Danieli has committed to contributing approximately 25% of the equity and will participate in construction as a project partner.
The project has previously entered a phase of coordinated advancement between the government and industry players. According to Metinvest's official website, on November 20, 2024, Metinvest signed a joint declaration with the Italian Ministry of Enterprises and Made in Italy (MIMIT) to promote local industrial revitalization through the large-scale Piombino green steel plant. The related arrangements continue the memorandum of understanding signed on April 13, 2024, with participants including the Tuscany Region, the Municipality of Piombino, Danieli Officine Meccaniche, and Metinvest-Adria. Metinvest stated that the Italian government has supported the project and approved subsidies, credit guarantees, and funding for the construction of a new terminal at Piombino Port. The introduction of new investors is primarily aimed at further optimizing the financing structure against the backdrop of risks related to the Russia-Ukraine conflict, damage to the company's Ukrainian operational assets, and the cautious risk appetite of potential lenders.
The Piombino green steel project is positioned as one of Europe's more advanced low-carbon steel production bases. According to previous disclosures on Metinvest's official website, the project plans to adopt an electric arc furnace route and use raw materials such as scrap steel, pig iron, and direct reduced iron (DRI) from Ukraine. Upon completion, the project is expected to create approximately 1,100 jobs and help reduce Italy's dependence on steel imports. For Metinvest, the project will also create synergies with its Ukrainian mining resources and downstream European steel operations.
