Metinvest supports integration of Ukrainian and Italian businesses

The company plans to invest in low-carbon production in Ukraine and Europe

Metinvest Group supports the integration of Ukrainian and Italian businesses for the sustainable development of the industry in both countries. This was emphasized at the Italian-Ukrainian business forum in Rome, the company said in a statement.

According to Dmytro Nikolayenko, the group’s commercial director, the company aims to lead Europe’s transition to green steel production.

“Our main initiatives include plans to modernize equipment at Northern GOK to improve quality and productivity, as well as the construction of a DRI/HBI production facility with a total capacity of 7.5 million tons per year, which will subsequently switch from natural gas to hydrogen as part of our commitment to decarbonization. We plan to invest in low-carbon, environmentally friendly production in Ukraine and Europe. We want to build a reliable steel bridge between the economies of Ukraine and the EU by integrating the Ukrainian steel industry into the European one,” he explained.

According to Mr. Nikolayenko, these initiatives are aimed at producing 6.8 million tons of green steel annually, which will make Metinvest a major player in the sustainable steel production market in Europe. In addition, this will enable the Group’s Kryvyi Rih GOKs to be 100% utilized, creating jobs.

Luca Villa, CEO of Metinvest Adria, believes that the construction of Metinvest’s new plant in Piombino guarantees the future. According to him, the Ukrainian company is able to control the entire steel value chain, from mining in Ukraine to processing. Therefore, the company will buy scrap on the free market for only a third of its needs.

Yulia Svyrydenko, First Vice Prime Minister and Minister of Economy of Ukraine, noted that metallurgy is one of the economic sectors that unite Ukraine and Italy. She reminded that the Ukrainian industry had been showing dynamic development before the full-scale invasion. The war has severely affected steel production, but the country’s steelmakers are gradually resuming production and increasing exports.

“Ukraine has the potential to replace Russian metal in the EU market and thus strengthen European strategic autonomy. In cooperation with Italian manufacturers of equipment for green metallurgy, we need to modernize and restore Ukrainian enterprises to meet new technological standards,” she emphasized.

At the Italian-Ukrainian Business Forum, the Italian Ministry of Business and Metinvest signed a historic declaration on the construction of a steel plant in Piombino. The environmental project is worth €2.5 billion and is part of Italy’s efforts to revive the steel industry. Work on the site could begin as early as late 2024 or early 2025, with first steel expected in 2027.