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JSW Steel Italy has signed a memorandum of understanding (MoU) with the Italian government to relaunch the steelworks site of Piombino with an investment of 143 million euros.
In a statement, the company said that an MoU was signed with Italian authorities and its subsidiary, JSW Steel Italy SRL.
Apart from doubling the current rail-making capacity from 300,000 tonnes to 600,000 tonnes per annum, the investments at Piombino are aimed at making the rail mill more efficient, the most modern, technologically advanced, and best in class, the company added.
The Italian steel industry is undergoing a transformative stage, JSW Group Chairman, Sajjan Jindal said. “JSW Steel Italy’s investments to modernise the Piombino Steelworks site reiterates our commitment to partner with the Italian government’s effort in the growth and economic development of the region. The investments of 143 million euros in modernising the rail mill at Piombino will make the Piombino rail mill the most modern, technologically advanced and best in class rail mill in Europe.”
“This project will safeguard the aspiration towards the development of Piombino as a steel hub and will step up domestic production which will result in a reduction of imports of steel products in Italy,” he added.
The project envisages setting up a tandem mill, head hardening facility, and increasing the length of rails from 108 to 120 metres.
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The MoU sets the conditions for efficient and sustainable state support for the production of rails, the company said, adding that it was part of a broader project to kick-start the economic development of the region which also includes the restarting of the production of steel products to safeguard employment and reduce the import of steel products into Italy.
In 2018, JSW Steel announced the acquisition of Aferpi S.p.A, Piombino Logistics S.p.A and GSI Lucchini S.p.A for 55 million euros on a cash-free, debt-free basis. With the transaction, JSW Steel hoped to establish its presence in Italy with access to the European speciality steel long products market.
