Metinvest is seeking a new partner to join the project for the construction of the new green steel mill in Piombino, with the aim of strengthening its financial structure and improving its bankability amid the uncertainty created by the ongoing war in Ukraine. The news, first reported by Bloomberg, was later confirmed by the company itself, which clarified that the possible entry of a third investor would not alter either the industrial scope of the project or its overall financing plan.
According to sources familiar with the matter, the Ukrainian steelmaker is considering opening the project’s capital, valued at around €3.2 billion, in order to reduce its financial exposure and facilitate the involvement of lending institutions. The prolonged conflict in Ukraine has reportedly led some potential financiers to adopt a more cautious approach, making the involvement of an additional industrial or financial partner advisable.
Metinvest, however, reiterated that it continues to rely on the support of all stakeholders involved, starting with the Italian government. The company also stressed that it has already defined the project’s debt structure and is continuing negotiations with banks to complete the financing package, adding that the search for a new investor is intended to strengthen the project’s risk profile rather than address any funding shortfall.
As SteelOrbis previously reported, the project, developed by Metinvest Adria, a joint venture between Metinvest and Danieli, envisages the construction of a new low-emission steel plant at the former Lucchini site in Piombino, based on electric arc furnace (EAF) technology and with an annual production capacity of more than 2.7 million mt of hot rolled coils (HRC). The total investment is estimated at approximately €3.2 billion, making it one of the largest steel investment projects currently underway in Europe.
In May, the project received significant institutional support. Invitalia approved €285 million in incentives for the construction of the electric arc furnaces and related production infrastructure, while Italy’s Ministry of Enterprises and Made in Italy allocated an additional €92 million for the completion of the northern quay at the Port of Piombino, an infrastructure considered strategic for the implementation of the industrial plan. The project was also declared to be of overriding national strategic interest, paving the way for the appointment of a special commissioner to accelerate its implementation.
Despite the progress achieved on the institutional and permitting fronts, completing the financial structure remains one of the last key steps before the project can move into its operational phase. The potential entry of a new investor could therefore further strengthen the project’s financial credibility and facilitate the completion of the financing required to launch construction.