Arvedi Group raises €900 million to expand production and decarbonize

Italian steel company Arvedi Group has raised €900 million in financing to implement a large-scale investment program aimed at technological upgrading, production expansion, and decarbonization. Part of the funds will also be used to optimize the structure of current debt, according to Kallanish.

According to official information, approximately €750 million consists of medium- and long-term credit lines with maturities of up to six years, and another €150 million is revolving credit facilities. The agreement was concluded with the participation of a pool of Italian and international banks, including BNP Paribas, Intesa Sanpaolo, UniCredit, Deutsche Bank, Banco BPM, and others. Part of the financing is backed by a SACE state guarantee under the Archimede program.

Arvedi’s investment program aims to increase the company’s competitiveness by expanding its high value-added product lines, reducing its environmental impact, and accelerating its transition to carbon neutrality. Particular emphasis is placed on the revival of the Acciai Speciali Terni (AST) plant, which Arvedi acquired in 2022.

In early June, AST and the Italian government signed a long-awaited agreement on the implementation of an industrial plan to modernize the enterprise. The plan provides for €1.1 billion in investments in new rolling, pickling, and annealing lines, as well as two projects for the production of electrical steel. Arvedi plans to invest €557 million in this plan by 2028.

As a reminder, an agreement was recently signed in Rome at the Italian Ministry of Enterprise and National Production (MIMIT) between the Italian government, Arvedi, and regional and local authorities on the restoration and environmental modernization of the Acciai Speciali Terni (AST) industrial site. The agreement provides for investments of over €1.1 billion, decarbonization of production, and job preservation.