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Metinvest Adria project in Piombino edges ahead, construction still not underway amid funding and permit issues

Friday, 23 January 2026 17:15:45 (GMT+3)   |   Brescia

According to local press reports, between 2025 and early 2026 the project for the new Metinvest Adria steel plant at the former Lucchini site in Piombino has made significant progress on the institutional front, though it has not yet moved into the operational construction phase.

As previously reported by SteelOrbis, in July 2025 a program agreement (Accordo di Programma) was signed in Rome for the redevelopment of the Piombino steel hub, within the framework of the Ukraine Recovery Conference. The agreement, signed by Metinvest Adria and the relevant public stakeholders (Italy’s Ministry of Enterprises and Made in Italy - MIMIT, the Ministry of Infrastructure and Transport - MIT, the Ministry of the Environment and Energy Security - MASE, and the Ministry of Labour), together with the Tuscany regional authority and the Municipality of Piombino, provides for the construction of a next-generation steelmaking facility. The total investment was indicated at around €2.5 billion, including €1.5 billion related to Danieli’s technology supply, with an estimated employment impact of about 1,100 stable jobs, direct and indirect.

Within the same process, a development agreement (Accordo di Sviluppo) with MIMIT has also been defined and a SACE insurance guarantee has been secured, becoming effective subject to approval by Italy’s Ministry of Economy and Finance (MEF). Commenting on the signing of the agreement, minister Adolfo Urso stated, “With the program agreement, we are launching a strategic project that relaunches the production site, turning it into a cutting-edge hub with green technologies.”

In November 2025, Italy’s Council of Ministers declared the “Piombino Metinvest Adria” project to be of pre-eminent national strategic interest, also providing for the appointment of an extraordinary commissioner to speed up procedures. According to MIMIT, the plan concerns an electric arc furnace (EAF) steel plant, with reported production capacity of over 2.7 million mt per year, with total investment revised to €3.2 billion, and state incentives of up to a maximum of €323 million.

According to the latest assessments, despite these developments, the project is not yet considered “under construction”. Among the main steps still to be completed are the closing of the financing structure (definition of the banking pool and guarantees), completion of the environmental/urban/technical permitting process, and preliminary on-site activities, including possible demolition works, remediation and site preparation.

Timelines indicated by institutional sources and reported by the local press point to the start of works by 2026 and full operation by 2029, depending on progress in the permitting procedures and the finalization of the financing structure.


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