A new €2.5 billion steel plant will support the decarbonization of steel production while further deepening economic cooperation between Ukraine and Italy.
During the Italian-Ukrainian Business Forum held in Rome, the Italian Ministry of Business and Metinvest Group signed a joint declaration to build the facility in Piombino. According to Interfax-Ukraine, the project—focused on environmental sustainability—is a key part of Italy’s strategy to revitalize its steel industry.
The new plant will occupy a 260-hectare site and is designed to produce up to 2.7 million tons of hot-rolled coils annually. By utilizing Ukrainian raw materials, the facility will contribute to reducing Italy’s reliance on steel imports from non-EU countries.
In addition to the steel plant itself, the project includes plans to safeguard existing jobs, develop a broader industrial zone, and introduce vocational training programs. Construction work could begin as early as late 2024 or early 2025, with the first steel output expected in 2027.
The initiative is being carried out in partnership with Italian engineering company Danieli. It is also expected to boost the use of Ukrainian iron ore mining and processing capacities, opening new avenues for modernization in the steel industry. Italy’s export credit agency SACE, along with banks including Cassa Depositi e Prestiti, have expressed interest in financing the project.
As previously reported by GMK Center, Metinvest significantly ramped up production between January and September 2024. Iron ore concentrate output rose by 63% year-over-year to 12.24 million tonnes. Steel production increased by 5% to 1.61 million tonnes, and pig iron output grew by 2% to 1.37 million tonnes. However, production of commercial steel products declined by 3% year-over-year to 2.3 million tonnes. This included a 5% drop in semi-finished products to 626,000 tonnes and a 3% decrease in rolled products to 1.68 million tonnes.
