Green Steel Revolution: Metinvest’s CEO on Strategic Expansion Plans

The global supply of direct reduced iron (DRI), hot briquetted iron (HBI), and pig iron is expected to see a steady rise in the coming years. Yuriy Ryzhenkov, the CEO of Metinvest Group, conveyed this insight during the Siderweb 2024 forum held on September 26 in Vicenza, Italy.

At present, green steel production largely depends on the electro steel industry, where the availability of high-quality scrap metal remains limited. However, there is an alternative approach that involves blending scrap with other metal components, such as HBI, DRI, or pig iron, to enhance production efficiency.

Ryzhenkov noted that the demand for equipment capable of processing low-grade scrap into cleaner raw materials has been growing. In the past, scrap collectors showed little interest in this technology, but it has now gained significant traction among steel producers, who are adopting it to improve the quality of materials before smelting.

He emphasized that the shift toward cleaner processing methods is a global trend. While scrap is currently in short supply, Ryzhenkov expressed optimism that it will become more accessible over time. Meanwhile, the availability of DRI, HBI, and pig iron is projected to increase gradually.

Metinvest is also planning to construct an advanced steel plant in Italy in partnership with Danieli. This facility is designed to combine high efficiency, superior quality, and environmental sustainability. The company plans to source raw materials from its Kryvyi Rih GZK in Ukraine and is exploring the possibility of establishing a DRI/HBI plant within the country.

Initially, the project focused on building a rolling mill in Italy, using slabs from Azovstal to produce steel coils. However, following the destruction of the Mariupol facility, the plan evolved into the creation of a fully integrated metallurgical plant.

Metinvest aims to finalize software development and land agreements for the Italian site in the coming months. Construction is set to begin once the financing structure has been established. As previously reported by GMK Center, the company is actively seeking funding for a separate project in Piombino, which is expected to produce 2.7 million tons of steel annually. The total cost of the project is estimated at $2.8 billion, with loan financing covering at least 70% of the required capital.

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