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.
Italian steel group Marcegaglia, one of Europe’s leading steel processors and a major producer of welded tubes, flat products and stainless steel products, has announced an additional €600 million investment for the development of its Fos-sur-Mer production site in southern France, as part of its Mistral project. With this new allocation, unveiled during the Choose France summit, the total planned investment in the French industrial complex will rise to around €1.2 billion.
The project involves the transformation of the former Ascometal site, acquired by Marcegaglia in 2024, into an integrated steelmaking and hot rolled coil production facility. The investment is expected to significantly increase the site’s output, with annual liquid steel production planned to rise from the current 100,000-150,000 mt to around 2.1 million mt by mid-2028. Rolling capacity is expected to reach up to 3 million mt per year.
According to market sources, the project includes the modernization of the existing electric arc furnace and the installation of new technologies for the production and rolling of carbon and stainless steel. Once completed, the new industrial setup is expected to allow Marcegaglia to cover a significant share of its internal requirements for coils and slabs, with the material mainly intended to supply the group’s downstream plants in Italy.
As previously reported by SteelOrbis, in April Marcegaglia awarded Danieli a contract worth approximately €450 million, including implementations and spare parts, for the supply of the main technologies for the new Fos-sur-Mer steel complex. The agreement is part of Marcegaglia’s broader strategy to strengthen upstream integration, improve control over its supply chain and support the decarbonization of its production process. On the energy side, the project will be supported by the agreement signed with French energy company EDF for the supply of nuclear-generated electricity at competitive conditions for at least 10 years. The use of decarbonized electricity, together with scrap and low-carbon raw materials such as DRI and HBI, is expected to significantly reduce emissions compared to traditional integrated steelmaking routes.
The Fos-sur-Mer site will also include advanced automation solutions and digital systems aimed at optimizing energy consumption, productivity and resource use. The group’s stated objective is to develop a cost-competitive industrial asset aligned with the strictest European environmental and safety standards.
The project is also relevant for France’s industrial strategy, as it supports the country’s efforts to rebuild manufacturing capacity and develop low-emission industrial supply chains. The site’s location at the Grand Port of Marseille is also considered a key logistical advantage for raw material supply and the distribution of finished products.
The final investment decision is expected by the end of 2026, subject to the completion of the permitting process and the definition of conditions that are still under negotiation with the relevant French authorities. Once completed, the Mistral project will strengthen Marcegaglia’s position in the European flat steel market and increase the group’s self-sufficiency in upstream steel supply.