Special representatives of the Italian Steel Producers Association (ADI) are currently evaluating two competing industrial projects for the future steel mill, formerly known as Ilva.
Italian Minister of Entrepreneurship and "Made in Italy" Adolfo Urso confirmed to local media that the applications were submitted on time last Friday, Kallanish said.
According to sources close to the case, the proposal of the Indian company Jindal Group involves the transition from the current blast furnace production to environmentally friendly, electric steel production. The strategy, however, will focus on increasing steel processing capacity in Taranto, rather than primary steel smelting.
Over the next four years, until 2030, two blast furnaces will operate at the Taranto plant, while one electric arc furnace (EDP) is under construction. Starting in 2030, blast furnaces will be closed and dismantled, and production will be switched to steelmaking in EDP, which will significantly reduce CO2 emissions in Taranto.
This would meet the objectives of the decarbonization tender by phasing out blast furnace production.
The government aims to reach a production level of about 6 million tons in the coming years. Jindal plans to achieve this by integrating and expanding its processing facilities in Taranto, supplying imported slabs from its future facilities in Oman.
The group is expected to invest about 1.5 billion euros ($1.74 billion). Taranto will become the strategic hub of Jindal's global steel production and processing network.
On the contrary, the plan presented by the American investment firm Flacks Group is aimed at increasing the production capacity of the steel plant in Taranto, in which more than 5 billion euros are invested.
Earlier, sources told Callanish that Jindal's plan could lead to permanent loss of working capacity, which would also affect employment (see Callanish, March 17).
Last year, Jindal Steel Duqm, part of the Jindal Group, postponed the launch of the first stage of its environmentally friendly hydrogen-powered steel production complex in Oman's Special Economic Zone in Duqm (SEZAD) to 2028. The plant will include two direct iron recovery modules with a capacity of 2.5 million tons per year each. The first unit is expected to be operational by December 2028, and the second in 2030.
The Jindal Group did not comment before the deadline for submitting to the press.
Author: Natalia Capra France
Kallanish.com
