According to Bloomberg, as reported late last week, Ukrainian steelmaker Metinvest is considering several options regarding its involvement in the project for the new green steel plant in Piombino, including the possibility of exiting Metinvest Adria, the joint venture established with Italian plantmaker Danieli. A decision could be made by the end of October.
Metinvest currently holds a 75 percent stake in the joint venture responsible for developing the project, which involves a total investment of approximately €3 billion. Metinvest's potential exit would therefore result in a significant change in the ownership structure of the Piombino green steel plant project, though no final decision has yet been made.
Luca Villa, CEO of Metinvest Adria, explained that the need to find a new partner had already emerged in August, but the situation in Ukraine has deteriorated further in the meantime. Continued Russian attacks have also hit Metinvest's facilities, forcing the group to significantly reduce production.
14 international groups interested in the project
According to Villa, 14 major international companies are currently examining the Piombino steel plant project. These include Japanese, Indian and European industrial or semi-industrial groups, as well as a US company. Some potential investors are reportedly interested in replacing Metinvest by acquiring its entire stake, while others could join the joint venture alongside Metinvest and Danieli. The interested parties also reportedly include financial investors that could support the Ukrainian group.
Meanwhile, Danieli has confirmed its intention to move forward with the project. Company president Alessandro Brussi stated that Danieli understands Metinvest's current difficulties and is working with the Ukrainian group and several major banks to identify a suitable partner for the project.
Authorization process moves forward
Alongside the search for a new partner, the project has made progress in the authorization process with the approval of the Incidence Assessment (VIncA). “Precisely because of the quality of the project and the advanced stage of the approval process, there is strong interest from financial and industrial investors in participating in its development,” Villa stated, adding that authorizations from the Tuscany Region and the Italian Ministry of the Environment and Energy Security (MASE) are also expected by the end of the month.
