Metinvest is working to raise financing for the construction of a plant in Italy, — Group CEO

Metinvest Group is working to raise financing for the construction of a steel plant in Piombino, Italy. Construction may start by the end of this year or early next year.

Metinvest CEO Yuriy Ryzhenkov said in an interview with Forbes. The company is currently finalizing an action plan that will set out the obligations of the company, the Italian government and the local authorities of Piombino.

According to the plan, the plant will produce 2.7 million tons of steel per year. Its total cost is €2.5 billion, with at least 70% of the loan funds. The project is being implemented jointly with the Italian company Danieli.

“We are also working on securing financing. As soon as we receive confirmation from the banks, we will begin executing the project. I hope construction will start by the end of this year or the beginning of next year. According to the plan, the plant is expected to produce its first steel by the end of 2027,” he said.

The Italian project aims to become a pilot project for the post-war reconstruction of Zaporizhstal and Kametstal, as well as to create additional demand for the Group’s Minings. At the same time, Metinvest is considering the acquisition or lease of a steel plant in Eastern Europe, including Romania, Italy and Poland.

“For us, it is important that any acquisition or lease aligns with our strategy of transitioning to green metallurgy and increasing demand for high-quality pellets and ore with a high iron content from our Ukrainian mining and processing plants,” Ryzhenkov said of the Group’s plans.

Back in April, it was reported that Metinvest Group had committed to build a new green steel plant in Piombino as part of a program agreement with the Italian Minister of Economic Development. The plant in Piombino will be one of the most technologically advanced and environmentally friendly facilities in the country.