Metinvest Adria’s project to build a new green steel plant at the former Lucchini site in Piombino has taken another step forward. Invitalia, Italy’s national agency responsible for managing Development Contracts, has admitted for incentives the industrial proposal submitted by the joint venture between Metinvest Group and Danieli for the construction of a new low-emission steelmaking facility. The approved support amounts to €285 million and will be allocated to the construction of electric furnaces and the production infrastructure linked to the project. The overall investment remains estimated at around €3.2 billion, confirming it as one of the most significant industrial projects currently under way in the European steel sector.
As previously reported by SteelOrbis, the Piombino Metinvest Adria project had been declared of pre-eminent national strategic interest by Italy’s Council of Ministers, with the expected appointment of a special commissioner to speed up procedures. The plan concerns the construction of an electric steelmaking plant with an indicated production capacity of more than 2.7 million mt per year, as part of a broader effort to relaunch the Piombino steel hub and reindustrialize the area. The project includes the construction of a modern electric arc furnace for the production of low-emission steel, in line with Europe’s decarbonization targets and the ecological transition of heavy industry. According to Italy’s Ministry of Enterprises and Made in Italy, the investment confirms the strategic importance of the Piombino hub within the national plan to strengthen the competitiveness of the Italian steel industry.
Italian Minister of Enterprises and Made in Italy Adolfo Urso described Invitalia’s decision as “a decisive step for the relaunch of the Piombino steel hub and for the creation of a modern, competitive and sustainable steel supply chain.” Urso underlined that the project is “one of the most important industrial investments in Europe,” capable of combining innovation, environmental sustainability and skilled employment.
In support of the project, the ministry has also allocated €92 million for the completion of the northern quay at the port of Piombino, an infrastructure considered strategic for the full implementation of the industrial investment. The port works are part of the necessary infrastructure to support the future operation of the site and the logistics connected to the new steel plant.
The Italian government has reiterated its intention to support the reindustrialization of the area by accelerating the infrastructure and authorization procedures required. The declaration of national strategic interest and the financial support approved by Invitalia therefore strengthen the institutional framework of the project, which nevertheless remains dependent on the completion of the relevant operational procedures and the full definition of implementation conditions.
Metinvest Adria also expressed satisfaction with the decision. CEO Luca Villa said Invitalia’s approval was further confirmation of the project’s strategic importance for Italy, highlighting the focus on technological innovation and its positive environmental impact. Piombino Mayor Francesco Ferrari also referred to the institutional talks held in recent months with the ministry and Invitalia’s top management, stressing that the state’s financial support represents another concrete confirmation of the path toward relaunching the local steel hub.
The Liberty Magona dossier
The Metinvest dossier comes at a time of renewed attention on the Piombino steel sector. In recent days, a preliminary agreement was also reached between Liberty Steel and Trasteel for the transfer of the Liberty Magona plant, although the transaction remains subject to the approval of Greensill’s creditors’ committee.
According to available information, the ministry has scheduled an operational meeting for June 4 to define the practical measures linked to the possible approval of the agreement, including the payment of wages and the extension of temporary layoff support. A further meeting with the Ministry of Labor is scheduled for June 9 regarding the extension request, while the objective indicated by the legal representatives is to reach the procedure for leasing the plant to Trasteel by July 3, the expiry date of the current temporary layoff scheme.
Overall, the latest developments confirm progress in Piombino’s industrial relaunch, although the process remains dependent on the completion of the authorization, infrastructure, and financial procedures required for the full implementation of the projects.