Marcegaglia increases investment in the restart of its plant in France to €800 million

The Italian steel group Marcegaglia has announced an increase in investment in the restart of its steel plant in FOS-sur-Mer (southern France), formerly known as Ascometal, to €800 million. The investment is aimed at partial vertical integration of production in an unstable market and growing supply chain risks, said Antonio Marcegaglia, the group’s president, at the Made in Steel conference in Milan.

The project envisages that stainless steel production will remain at the facility in Sheffield (UK), while re-rolling will be concentrated in FOS-sur-Mer. Once operational, the facility will supply approximately 30% of Marcegaglia’s coils and slabs needs, which is especially important amid unstable supplies and declining steel production in the EU.

“We see this project as a strategic step to strengthen our supply independence. In the current environment, it is reasonable to partially integrate the production chain to reduce risks in the medium and long term,” Marchegaglia commented.

The company is also in talks with the French government and energy company EDF on long-term electricity contracts.

Amid the uncertain situation on the steel market in Europe, Marcegaglia remains cautiously optimistic. According to the group’s president, demand in 2025 will be roughly at the same level as last year, and prices will stabilize at a slightly higher level than in 2024. Seasonal growth in demand, import restrictions due to CBAM, anti-dumping duties and safeguard measures will support the domestic market.

In March, Marcegaglia announced plans to invest €750 million to modernize and restart its steel plant in FOS-sur-Mer, which was acquired in June 2024. The event is expected to create 380 new jobs and retain 320 existing ones.