EIB Supports Marcegaglia’s €170 Million Plan to Decarbonise and Innovate Steel Production

(IN BRIEF) The European Investment Bank (EIB) has provided €100 million in financing to Marcegaglia, a Mantua-based steel group, as part of a €170 million investment plan to decarbonize and modernize its operations. The funding will support projects at key facilities in Ravenna, Gazoldo degli Ippoliti, and San Giorgio di Nogaro, including the automation of logistics, development of low-carbon technologies, and decarbonization of production lines. Running through 2028, the initiative aligns with EU climate neutrality goals and aims to enhance energy efficiency and sustainability in steel production. This partnership reflects Marcegaglia’s commitment to innovation and environmental stewardship.

(PRESS RELEASE) LUXEMBOURG, 14-Dec-2024 — /EuropaWire/ — The European Investment Bank (EIB) has announced €100 million in financing for Marcegaglia, the Mantua-based steel group, to support its €170 million investment program aimed at enhancing energy efficiency, decarbonizing operations, and advancing automation across its facilities. The agreement was finalized at Marcegaglia’s historic headquarters in Gazoldo degli Ippoliti, with signatures from Antonio and Emma Marcegaglia and EIB Vice-President Gelsomina Vigliotti.

Running through 2028, the investment plan focuses on modernizing key plants in Ravenna, Gazoldo degli Ippoliti, and San Giorgio di Nogaro. Specific projects include automating logistics systems, decarbonizing a galvanizing line in Ravenna, and developing innovative, energy-efficient technologies for electrical steels. Additionally, the funding will support research and development to optimize production processes at these facilities.

EIB Vice-President Gelsomina Vigliotti emphasized the significance of the partnership, stating, “The steel industry plays a vital role in Europe’s economy but has significant energy demands and environmental impacts. This financing will enable Marcegaglia to transition toward sustainable industrial processes, improving its environmental footprint and aligning with EU climate neutrality goals for 2050.”

Antonio and Emma Marcegaglia highlighted the importance of the loan in advancing the company’s sustainability and innovation goals, noting, “This partnership with the EIB reflects our dedication to state-of-the-art technology and decarbonization. These initiatives will not only enhance our plants’ efficiency but also reduce environmental impacts, positioning us as leaders in the European steel industry.”

As part of its support for the EU’s REPowerEU objectives, the EIB is funding up to 75% of the project cost, exceeding its standard 50% limit. This aligns with the bank’s broader commitment to allocate €45 billion in additional financing for energy-related projects by 2027, enabling transformative initiatives like Marcegaglia’s to drive innovation and sustainability across Europe.

Background information

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances investments that contribute to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.  The EIB Group, which also includes the European Investment Fund (EIF), signed a total of €88 billion in new financing for over 900 projects in 2023. These commitments are expected to mobilise around €320 billion in investment, supporting 400 000 companies and 5.4 million jobs. In the last five years, the EIB Group has provided more than €58 billion in financing for projects in Italy.

All projects financed by the EIB Group are in line with the Paris Climate Accord. The EIB Group does not fund investments in fossil fuels. We are on track to deliver on our commitment to support  €1 trillion in climate and environmental sustainability investment in the decade to 2030 as pledged in our Climate Bank Roadmap. Over half of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.  Approximately half of the EIB’s financing within the European Union is directed towards cohesion regions, where per capita income is lower. This underscores the Bank’s commitment to fostering inclusive growth and the convergence of living standards.

Marcegaglia is an Italian industrial group that has been operating in the steel processing industry for over 60 years. The group was founded by Steno Marcegaglia in 1959 and is now fully controlled by his children, Antonio and Emma, and is present in the entire value chain. The group acquired an electric furnace steelworks for special steels in Sheffield, UK in 2023 and a site in Fos-sur-Mer, France in 2024. This meant that the company also started operating in primary production. This was done in order to shorten and stabilise supply chains – making processes smoother and more interconnected – to continue developing increasingly sustainable and competitive products. The group has a turnover of nearly €8 billion, 7 800 employees, 37 plants in four continents and produces a total of 6.5 million tonnes of processed steel every year for over 15 000 customers in Europe and around the world. As a result, the group is recognised as a national and global leader in the steel processing industry.

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SOURCE: European Investment Bank