Metinvest secures key agreements for green steel plant in Italy

Metinvest has taken a major step toward launching its new steelmaking facility in Piombino, Italy, with the signing of a comprehensive Program Agreement involving key Italian ministries and local authorities. According to the company’s press release, the agreement confirms institutional backing for the project and lays the groundwork for public support, insurance guarantees, and local employment commitments.

The Piombino project, which is a joint venture between Ukraine’s Metinvest Group and Italy’s Danieli Group, aims to build a state-of-the-art steel plant on the site of a former industrial hub inactive for over a decade. The total investment in the project amounts to €2.5 billion, with €1.5 billion earmarked for the advanced equipment provided by Danieli. Once operational, the plant is expected to create around 1,100 stable jobs, both direct and indirect.

The Program Agreement was signed by Metinvest Adria and four Italian ministries (Enterprises and Made in Italy (MIMIT), Infrastructure and Transport, Environment and Energy Security, and Labor and Social Policies) along with the Tuscany Region, the Municipality of Piombino, and local institutions. It complements a Development Agreement with MIMIT and insurance support from SACE, further strengthening the project’s financial and institutional foundation.

Metinvest emphasized the project’s dual significance: it supports Italy’s industrial revitalization and contributes to Ukraine’s broader reconstruction efforts.

“We are not only signing an agreement, but starting a project that speaks of reconstruction, resilience, and international cooperation. The Piombino hub will become a reference point for Italian industry and a pillar for Ukraine’s recovery. We are proud to contribute to both of these missions,” said Metinvest CEO Yuriy Ryzhenkov.

Designed as a low-carbon DRI-EAF facility, the Piombino plant will play a strategic role in decarbonizing Italy’s steel sector. At the same time, it will strengthen Ukraine’s integration into European industrial value chains as Ukraine will supply DR-grade feed for this plant. Ukraine holds a competitive advantage with its 5 billion tons of magnetite iron ore reserves, well-suited for beneficiating and producing DR-grade feedstock. These resources present a strategic opportunity for all stakeholders, supporting the decarbonization of both the European and Ukrainian iron and steel industries.