Italian government and Arvedi sign agreement on environmental modernization of AST

The agreement envisages investments of over €1.1 billion, decarbonization of production and job preservation

In Rome, at the Italian Ministry of Enterprise and National Production (MIMIT), a long-awaited agreement was signed between the Italian government, Arvedi, and regional and local authorities on the restoration and environmental modernization of the Acciai Speciali Terni (AST) industrial site. This was reported in a press release from the ministry.

As Minister Adolfo Urso emphasized, the agreement is the result of more than two years of joint work by the government, trade unions, local authorities, and the company.

The plan provides for investments of €1.13 billion, of which €557 million will be invested by 2028, with the remainder depending on market conditions. The project aims to transform AST into an environmentally friendly and high-tech center of European metallurgy.

Government support will be implemented through the “Development Contract for Environmental Protection” mechanism, under which the company has already applied for €96.5 million in state incentives.

The main priorities include the introduction of hydrogen and alternative fuels, reducing harmful emissions, and improving energy efficiency. The installation of a new rolling mill, pickling, rolling, and annealing lines is planned, as well as the construction of two electrical steel lines, which had previously been suspended.

Particular attention is paid to the social component. Arvedi AST has committed to retaining all 2,229 jobs, re-employing temporarily laid-off workers, and organizing professional retraining programs. The Umbria region, for its part, will support the initiative through the European Social Fund.

The agreement also provides for a new energy supply system, including the use of regional hydroelectric power plants. Thirty percent of the energy produced will be reserved for energy-intensive enterprises in Umbria on preferential terms.

A special Executive Committee will be set up under MIMIT to oversee the implementation of the agreement and monitor compliance with schedules and commitments by all parties.

“This is not just an agreement — it is a policy for the future that combines ecology, innovation, and employment,” Minister Urso emphasized.

As GMK Center reported earlier, at the end of 2024, global stainless steel production increased by 7% compared to 2023, reaching 62.621 million tons. Europe, including Ukraine, increased its stainless steel production by 1.5% y/y – to 6.09 million tons.

Arvedi Acciai Speciali Terni (AST) is an Italian stainless steel producer that is part of the Arvedi Group. The plant in Terni specializes in the integrated production of hot-rolled, cold-rolled, and electrical steel. Since 2022, Arvedi has invested €325 million in AST, and this year’s capital investment is expected to reach €232 million.