Italian steel producer Marcegaglia has awarded Italy-based plantmaker Danieli the contract for the construction of its new steelmaking site in Fos-sur-Mer in the south of France, as part of its “Mistral Project.” The agreement, announced in a joint press release issued on April 13, has a total value of approximately €450 million, including upgrades and spare parts.
The project involves a total investment of around €1 billion for the construction of a new facility dedicated to steel production and hot rolled coil (HRC) manufacturing. Once fully operational, the site will have an annual production capacity of more than 2 million mt of electric arc furnace steel and up to 3 million mt of HRC in carbon steel and stainless steel. According to the companies, the new facility will enable Marcegaglia to cover about 35 percent of its total coil and slab requirements, with output mainly intended for the group’s Italian plants.
The investment, described by the parties as the largest in Marcegaglia’s history in terms of upstream integration, is aimed at strengthening supply chain stability, increasing added value and supporting the group’s decarbonization strategy. For Danieli, the agreement further confirms its role as a technology partner for large-scale sustainable steelmaking investments.
On the environmental side, the companies stated that the use of scrap, low-carbon DRI, and nuclear and renewable energy is expected to allow for a reduction of up to 80 percent in greenhouse gas emissions compared to traditional production routes. The Fos-sur-Mer site has also been designed in line with the strictest European environmental and safety standards, through the use of advanced automation solutions, resource optimization and high energy-efficiency technologies.
The final investment decision is expected by the end of 2026, subject to the completion of the permitting process and the definition of further conditions that are currently in an advanced stage of negotiation with the relevant French authorities.
As SteelOrbis previously reported, in February this year Gravithy, Elyse Energy and Marcegaglia signed a memorandum of understanding to explore industrial synergies in the Fos-sur-Mer area, with the aim of supporting the development of a low-carbon industrial hub.