Marcegaglia increases investment in a low-carbon steel project in Fos-sur-Mer to 1.2 billion euros
Italian steel producer Marcegaglia has signed a contract with the Italian company Danieli for the construction of a new steel mill in Fos-sur-Mer in southern France as part of the Mistral project. The total cost of the agreement, which was announced in a joint press release published on April 13, is about 450 million euros, including upgrades and spare parts.
Italian steel group Marcegaglia, one of the leading European steel producers and a major producer of welded pipes, flat rolled products and stainless steel products, has announced an additional investment of 600 million euros to develop its production in Fos-sur-Mer. A production site in the south of France as part of the Mistral project. Thanks to this new allocation, announced at the Choose France summit, the total volume of planned investments in the French industrial complex will grow to about 1.2 billion euros.
The project provides for the transformation of the former Ascometal plant, acquired by Marcegaglia in 2024, into an integrated steel and hot-rolled coil production facility. The investment is expected to significantly increase the plant's productivity, with annual liquid steel production expected to increase from the current 100,000-150,000 tons to about 2.1 million tons by mid-2028. The rolling capacity is expected to reach 3 million tons per year.
According to market sources, the project provides for the modernization of the existing electric arc furnace and the introduction of new technologies for the production and rolling of carbon and stainless steel. Upon completion, the new industrial plant is expected to enable Marcegaglia to meet a significant proportion of its domestic needs for rolls and slabs, which are mainly intended for supply to the group's processing plants in Italy.
As previously reported by SteelOrbis, in April Marcegaglia signed a contract with Danieli worth about 450 million euros, including implementation and spare parts, for the supply of core technologies for a new steel complex in Fos-sur-Mer. The agreement is part of Marcegaglia's broader strategy aimed at strengthening integration into extractive industries, improving supply chain control, and supporting decarbonization of production. As for energy, the project will be supported by an agreement signed with the French energy company EDF on the supply of electricity generated by nuclear power plants on competitive terms for at least 10 years. The use of decarbonized electricity, as well as scrap and low-carbon raw materials such as DRI and HBI, is expected to significantly reduce emissions compared to traditional integrated methods.