Italian steel producer Marcegaglia has awarded Italian mill Danieli a contract to build a new steel plant in Fos-sur-Mer in the south of France as part of its “Project Mistral”. The total value of the agreement, announced in a joint press release issued on April 13, is approximately 450 million euros, including upgrades and spare parts.
The project involves a total investment of approximately 1 billion euros for the construction of a new steel production and hot rolled coil (HRC) plant. Once operational, the plant will have an annual production capacity of more than 2 million tons of electric arc steel and up to 3 million tons of HRC carbon and stainless steel. The companies say the new plant will allow Marcegaglia to cover about 35 percent of its total coil and slab needs, with production destined mainly for the group's Italian plants.
The investment, which the parties describe as the largest in Marcegaglia's history in terms of upstream integration, aims to strengthen the stability of the supply chain, increase added value and support the group's decarbonization strategy. For Danieli, the agreement further reaffirms its role as a technology partner for large-scale investments in sustainable steel production.
On the environment, the companies said the use of scrap, low-carbon direct reduction, and nuclear and renewable energy is expected to reduce greenhouse gas emissions by up to 80 percent compared to traditional production routes. The Fos-sur-Mer site has also been designed to the strictest European environmental and safety standards, using advanced automation solutions, resource optimization and high energy efficiency technologies.
A final investment decision is expected by the end of 2026, subject to the completion of the permitting process and the determination of further conditions, which are currently in the final stages of negotiations with the relevant French authorities.
SteelOrbis previously reported that in February this year, Gravithy, Elyse Energy and Marcegaglia signed a memorandum of understanding to explore industrial synergies in the Fos-sur-Mer region to support the development of a low-carbon industrial hub.
