"Metinvest" may exit the steel plant project in Italy after Russian strikes

Metinvest Group is considering the possibility of completely exiting the project to build a new steel plant in Piombino, Italy, worth around €3 billion. One of the reasons is financial pressure after Russian strikes on the group's Ukrainian enterprises.

Bloomberg reports this, citing informed sources. Among the options the company is currently considering is the sale of its entire stake in the Metinvest Adria joint venture, established together with Italy's Danieli to implement the project.

A final decision has not been made yet. Metinvest confirmed to the publication that it is in talks with potential investors who could join Metinvest Adria as shareholders. The company is considering various options for the future ownership structure and has not yet determined what portion of its stake it is willing to sell.

The search for a new partner began earlier this year. Metinvest sought to reduce its own investment in the project to less than €300 million. The original plan assumed the Ukrainian group would provide over €500 million and control 75% of the project's share capital, with Danieli holding the rest.

The group's financial position has worsened amid a new wave of Russian attacks on Ukraine's metallurgical industry. In August and September, Zaporizhstal and Kametstal were hit, causing casualties, equipment damage, and halting some production facilities. In the first half of 2026, Metinvest posted a loss of $202 million.

The Piombino project itself is of strategic importance not only for Metinvest but also for Italy. In May, the Italian Ministry of Enterprises and Made in Italy approved €285 million in state support for Metinvest Adria. The funds are intended for electric arc furnaces and related production infrastructure.

The new plant was planned to be one of the most modern low-carbon metallurgical enterprises in Europe. Its design capacity is about 2.7 million tonnes of steel per year. For Metinvest, the enterprise was also intended as a way to diversify production beyond Ukraine and create additional demand for raw materials from Ukrainian mining and processing plants.

The possible revision of the Italian project takes place against the backdrop of much broader problems in Ukrainian metallurgy. Previously, Kurs Ukrainy wrote that after a series of Russian strikes, steel production almost stopped. Attacks on large enterprises simultaneously reduce output, export opportunities, and companies' financial resources for new investments.

Therefore, selling part or all of the stake in Metinvest Adria may allow Metinvest to reduce the amount of necessary investment and keep the project going with the participation of new partners. Currently, it is just one of the options, not a decision already made to exit Piombino.

Based on materials from: Bloomberg, Ministry of Enterprises and Made in Italy