The Italian government has reached a deal with plant supplier Danieli and Ukrainian steelmaker Metinvest to base a new mill in Piombino, Tuscany, the industry ministry has announced.

Rome is also working to reach a similar agreement with JSW Group to further expand production in Piombino, where the Indian steel-to-power conglomerate is already operational, people familiar with the matter told Reuters.

Metinvest, Ukraine's largest steelmaker, is looking for production sites abroad to offset significant asset losses due to the war with Russia, including the vast Azovstal steel plant in Mariupol that was destroyed during a prolonged Russian siege.

Yuriy Ryzhenkov, Metinvest's chief executive, said in the statement the investment plan would target a capacity of around 3Mt of steel and contribute to Italy's green transition.

Once the project with Metinvest and its two partners is fully operational, it will employ a total of about 1,500 people directly and in related industries, Industry Minister Adolfo Urso said.

"[The] agreement marks a crucial step in efforts to boost the Piombino site, which will play a central role in our national steel plan."

Adolfo Urso, Italian industry minister

"[The] agreement marks a crucial step in efforts to boost the Piombino site, which will play a central role in our national steel plan," Urso added.

Source: Reuters