Acciaiereie d`Italia launched blast furnace No. 1 after more than a year of downtime

Italian steel company Acciaiereie d’Italia (ADI) has restarted blast furnace No.1 (AFO1) at its Taranto steel plant after more than a year of downtime. This event marked an important milestone in the government’s plans to support the steel industry in the region. The event was marked by a ceremony with the participation of the company’s special commissioners and Italian Minister of Enterprises Adolfo Urso, the company reports.

Launching blast furnace No. 1 will help increase production capacity and allow the plant to obtain the necessary financial resources for further operation. The move is part of Taranto’s large-scale development plan, which involves significant capital investment in modernizing production, including the construction of direct iron recovery units and electric arc furnaces.

«The restoration of AFO1 marks the first crucial step towards decarbonization and the implementation of electric furnaces, thanks to significant investments.This production progress, combined with the implementation of environmental improvement measures, helps enhance the site’s competitiveness on both national and international levels,» ADI said in a statement.

It is planned that in 2024, ADI will produce 1.9-2.2 million tons of steel, although experts believe that the actual volumes may be lower. In the first quarter of 2025, blast furnace No. 2 is expected to be launched, and by the beginning of 2026, simultaneous operation of furnaces No. 1, No. 2, and No. 4 is expected, which should make it possible to achieve the production of 4.5-5 million tons of steel per year.

In addition, proposals to acquire ADI’s assets are currently being evaluated. Vulcan Green Steel from Oman, Canadian Stelco and Baku Steel Company have shown interest. However, analysts suggest that ADI could be split up and some of its assets, including plants in northern Italy, sold separately.

The most pessimistic forecasts predict the possible closure of the plant in Taranto or its transformation into a rental company

As GMK Center reported, at the end of March this year it became known that Acciaierie d’Italia will receive an additional €120 million to cover debts. The financial guarantee for the operation was provided by the Sace group, controlled by the Italian Ministry of Economy. The funds were in addition to another €100m credit line that Sace had opened to cover ADI’s debts to customers. In addition, Italy allocated €150 million for the maintenance of the plant in Taranto.