The Italian authorities have approved a new financial support measure in the 2026 budget aimed at maintaining domestic production of low-emission stainless steel based on scrap.
According to an Italian Senate document obtained by Kallanish, this measure is aimed at stimulating low-emission production processes and limiting import pressure. Acciai Speciali Terni, part of Arvedi, is the main beneficiary, confirms a source close to the company.
The text does not distinguish between flat and long-range rentals. The benchmarks are set per ton of steel, which shows that the measure is applied at the initial stage of production, and not to specific finished products. Both flat and long-range stainless steel products are acceptable if they are produced using low-carbon energy and scrap.
The measure provides for government funding of 35 million euros ($41.21 million) between 2026 and 2028. According to article 134 bis of the Senate document, at least 90% of the raw materials must be stainless steel scrap to qualify, although 70% is allowed for some special steel grades. In addition to the requirements for waste disposal, the beneficiary must comply with the conditions of energy efficiency.
The contribution can be combined with other forms of government assistance covering production costs. According to the document, this measure is aimed at increasing the competitiveness of the Italian stainless steel industry, maintaining domestic production capacity and bringing industrial policy in line with national and EU decarbonization goals.
Meanwhile, AST has just launched a new walking beam stove in Terni, which produced the first slab in early December. "The plant plays a fundamental role in the production process, both in terms of its impact on product quality and its contribution to reducing CO2 emissions. The new furnace is built using the most innovative technologies to reduce methane consumption and emissions into the atmosphere, while ensuring high productivity in terms of product quality," says Giovanni Arvedi, founder of Arvedi.
This is the most significant investment for the plant in the last 30 years, he adds.
Author: Natalia Capra France
Kallanish.com
