Metinvest is looking for a new partner to participate in the construction of a new steel mill in Piombino in order to strengthen its financial structure and improve its banking attractiveness in the face of 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 appearance of a third investor would not change either the industrial scale of the project or its overall financing plan.
According to sources familiar with the situation, the Ukrainian steel mill is considering the possibility of opening a capital project worth about 3.2 billion euros, which will reduce its financial risks and facilitate the attraction of credit institutions. It is reported that the protracted conflict in Ukraine has forced some potential financiers to take a more cautious approach, making it advisable to involve an additional industrial or financial partner.
Metinvest, however, confirmed that it continues to rely on the support of all stakeholders, starting with the Italian government. The company also stressed that it had already determined the debt structure of the project and was continuing negotiations with banks on completing the financing package, adding that the search for a new investor was aimed at strengthening the project's risk profile rather than eliminating the funding gap.
As previously reported by SteelOrbis, the project developed by Metinvest Adria, a joint venture between Metinvest and Danieli, involves the construction of a new low-emission Steel mill at the former Lucchini plant in Piombino, based on electric arc furnace (EDP) technology and with an annual production capacity of over 2.7 million tons of hot rolled steel (HRC). The total investment is estimated at around 3.2 billion euros, making it one of the largest steel industry investment projects currently underway in Europe.
In May, the project received significant institutional support.Invitalia approves 285 million euros in benefitsfor the construction of electric arc furnaces and related production infrastructure, while the Italian Ministry of Entrepreneurship and Made in Italy allocated an additional 92 million euros for the completion of the northern pier in the port of Piombino, an infrastructure that is considered strategic for the implementation of the industrial plan. It was also announced that the project is of primary national strategic interest, which paves the way for the appointment of a special
